Bitcoin has had a wild high this year. Valuing 156% so far in 2020, its price exploded above $18,000 this week.
The argument that Bitcoin „is bad because it can’t be used to buy coffee“ is no longer tolerable, according to Michael Sonnenshein, the director of the world’s largest digital asset manager, Greyscale. The company manages nearly $11 billion in digital assets
Michael said the pandemic this year was an important factor behind investments in Bitcoin. Greyscale saw investors with different motivations to buy the digital currency.
In the middle of 2020, 11 years after the birth of Bitcoin and with all the information available on the internet, it is still common to see ignorant critics on the subject to criticize digital currency, as happened yesterday, with a Brazilian fund manager saying that bitcoin „is useless“ (sic).
The growing involvement of major financial sector companies „really shows the staying power of the asset class and validates the involvement of others,“ he told the Business Insider.
Investors are no longer clinging to the idea that since we are not using Bitcoin to buy a cup of coffee, „it has failed as a currency,“ Michael said.
„They understand today that buying Bitcoin and putting it in their portfolio means being a store of value, a protection against inflation, a digital gold, a digital form of money that is much better suited to the digital world we live in today“.
For those who insist on criticising digital money, he said: „Bitcoin was born outside the realm of traditional financial services, it was not born in an arena where it should be traded on a stock market or that it would be held in custody in the same way as stocks or bonds“.
Michael thinks people should not worry that there are only 21 million Bitcoins
Each coin is divisible to the eighth decimal place, which means there are 100 million units within each Bitcoin. This is one of the features that investors like, because they can buy only a fraction of the currency and increase their position over time.
„When you think how many millionaires or billionaires or even what the global population is, there are 21 million Bitcoins times the 100 million units of each Bitcoin,“ he said. „There is a possibility that anyone who wants to get involved will own some part of Bitcoin“.
The world’s most popular cryptomeda had a wild ride this year. It has risen 117% so far in 2020, and its price has exploded above $18,000 this week.