Institutional investors now see Bitcoin as a digital alternative to gold. It’s quite surprising. Or did you expect it?
Let’s take a look at why instutional investors changed their opinion.
A digital alternative to gold
Michael Sonnenshein, CEO of Grayscale Investments, wrote in his report that Bitcoin absorbs the demand for gold in exchange traded funds (EFT). Institutional investors are now beginning to see Bitcoin as digital gold and a store of value. In October, confidence in Bitcoin saw a significant upward trend, while the gold curve remained broadly flat. This contrast supports the idea that investors now view Bitcoin as a digital alternative to gold.
Bitcoin is not the only one with a confidence curve. The curve of confidence in Ethereum (ETH) is not so round, but confidence in ETH is also growing. Could this would be a new era of investing and looking at preserving value? It seems institutional investors are starting to look for more ways to protect their money.
It is obvious why cryptocurrencies
Those of you, who are more interested in cryptocurrencies and also in Bitcoin already know why this is happening. It was time for investors to start looking at cryptocurrencies in a different light. This could be another one of the necessary steps to move closer to the adoption of cryptocurrencies by mainstream society. Cryptocurrencies have proven to us several times that they can deal with unexpected events better than the stock market, and this is one of the purposes for which they were created.
We will see what the future holds for us in the field of cryptocurrency adoption by mainstream society. We can hope that soon we will be able to choose a financial system where you own your funds and which takes care of your privacy.
While this may come as a surprise to some, it is one of the steps we need to have the right to privacy and ownership of money again in the future. Institutional investors are starting to understand now. If investing in cryptocurrencies attracts you, nowadays it is very easy to start. Just remember the golden rule of investing: invest only as much as you can afford to lose.