In 2020, Bitcoin Was Significantly Derisked

As more recognizable names become involved in one form or another, Bitcoin becomes largely derisked for interested parties that had previously been reluctant to dip in their toe.

INVESTORS

What do Paul Tudor Jones, Stan Druckenmiller, and Bill Miller have in common? They are all part of the growing list of prolific investors that are holding some Bitcoin. Let’s take a look at what some of them have had to say about it:

Paul Tudor Jones

In a letter addressing investors, Jones prefaced readers by outlining the massive money printing that has taken place so far in 2020. “We are witnessing the Great Monetary Inflation, an unprecedented expansion of every form of money unlike anything the developed world has ever seen.”

Stanley Druckenmiller

The “Bitcoin is digital gold” narrative has nabbed yet another. Stanley Druckenmiller is the latest high net worth investor to come out as a Bitcoin believer.

Bill Miller

Bill Miller formerly managed Legg Mason Capital Management Value Trust Fund, and had beat the S&P 500 for 15 years. He has recently emerged as a Bitcoin bull as well.

COMPANIES

Bitcoin is the elephant in the boardroom. In some cases, Bitcoin is even being held as a “treasury reserve asset” by several publicly traded companies. We can view this spreadsheet at BitcoinTreasuries.org to see what companies have begun allocating to Bitcoin.

BitcoinTreasuries.org manually tracks Bitcoin allocations of public & private companies

INSTITUTIONS

PayPal announced in October that it would allow its 346 million users to buy, hold, and sell Bitcoin on their platform. After initially intending to go live in 2021, PayPal then pushed up the launch date. They have launched their Bitcoin offering as of October 21st and are already seeing significant demand.

  • Square’s Cash App is currently selling twice as much Bitcoin than what is currently being produced by miners.
  • PayPal has nearly 3x the amount of users than Square in this regard.
  • Last but not least, Grayscale has been a behemoth when it comes to gobbling up newly minted Bitcoin supply as well.
Image provided by Kevin Rooke on Twitter

What About The Banks?

None of the information touches on the largest of financial institutions. The banks. Well, rest assured, because expectations are that traditional financial institutions could be getting involved soon enough.

Consensus and Cover Fire

All of these recent events can help provide cover fire for any money managers looking to get involved with Bitcoin. Publicly traded companies, large institutions, and big money investors getting involved in the game helps remove the career risk associated with Bitcoin.

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