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The world’s largest cryptocurrency fund manager says bitcoin is the next step in the development of money – and ‘I can not use it to buy coffee’ is no longer a good argument | Currency News | Financial and business news



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  • Bitcoin is not a fashion that will disappear, said Michael Sonnenshein, CEO of Grayscale Investments.
  • Investors understand that “buying Bitcoin and putting it in their portfolio is meant to be a store with value, inflation hedging, a digital gold, a digital form of money,” Sonnenshein told Business Insider.
  • Investors should not hang on to the fact that there are only 21
    million Bitcoin that will ever exist because each coin has 100 million units.
  • Investors like the fact that they can buy a fraction of the coin and add to their position over time, the crypto asset manager pointed out.
  • Visit the Business Insider website for more stories.

Bitcoin is not a fad and it is not a fair argument not to be able to use it to buy a cup of coffee, according to Michael Sonnenshein, CEO of Grayscale Investments, the largest asset manager of digital currency.

Growing involvement of major players in the financial sector “really talks about asset class endurance and validates other people getting involved,” he told Business Insider in an interview.

Sonnenshein, whose company supervises almost 11 billion. $ Cryptoactive, said the global pandemic this year was another major driver behind Bitcoin investments. Grayscale saw investors with different motives and desires to assign the digital token to their portfolios this year.

Investors are no longer stuck with the idea that because we do not use Bitcoin to buy a cup of coffee, it has failed as a currency, Sonnenshein said.

Read more: ‘I still think there is a long way to go’: A crypto CEO breaks down why he is bullish on Bitcoin, even after its rise back to $ 18,000 – and shares the second cryptocurrency that he believes has come to be

“I think they understand today that buying Bitcoin and putting it in their portfolio is meant to be a store with value, inflation hedging, a digital gold, a digital form of money that is much better suited. to the digital world we live in today versus historical value stocks like gold, which certainly would have been much more useful in a world of physical exchange.They see it as one of the most important next steps in the evolution of money and what constitutes a store of value. ”

After the pandemic brought the money markets to an end earlier this year, Bitcoin’s sustained power and demonstration of resilience proved to be one of the best-returning investments, he said.

For skeptics who question the validity of the token across conventional financial institutions, he said: “Bitcoin was born outside the traditional financial services sector, it was not born in an arena where it had to be traded on a stock market or that it had to held in the same manner as shares or bonds. “

Sonnenshein believes people should not hang on to the fact that there are only 21 million Bitcoin that will ever be in circulation.

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Each coin can be divided by the eighth decimal, meaning that there are 100 million units inside each Bitcoin. It’s one of the assets of the asset that investors like because they can only buy a fraction of the coin and add to their position overtime, Sonnenshein said.

“When you think about how many millionaires or billionaires or even just what the global population is, there are 21 million Bitcoin times the 100 million units within each Bitcoin,” he said. “There is an opportunity for anyone who wants to get involved to be able to own any piece of the Bitcoin protocol.”

The world’s most popular cryptocurrency has had a wild ride this year. It has risen 117% so far in 2020, and the price exploded over $ 18,000 this week.

The price began to rise higher in October after PayPal announced it would allow its users to buy, sell and hold tokens. Jack Dorsey payment firm Square invested in nearly 5,000 Bitcoins in October, US technology company Microstrategy bought 16,796 coins, and the UK start-up state also participated in the frenzy. Crypto-bulls say it is only a matter of time before it is widely adopted.

Read more: Buy these 15 cheap, unusual stocks starting in 2021 thanks to their accelerating sales growth, Jefferies says


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