Chief Operating Officer Michael Sonnenshein of Grayscale Investments has given his opinion on the increased adoption of Bitcoin and other cryptocurrencies.
The last few weeks have witnessed an increase in the number of cryptocurrencies, not to mention a surge in the value of BTC. This has caused a lot of talk and discussion from industry experts like Michael Sonnenshein, Grayscale Investments COO.
As a globally renowned digital asset investment fund, Grayscale Investments has about $11 billion in assets. During an interview, Michael Sonnenshein discussed how Bitcoin has achieved success over the past number of years. In his discussion on Bitcoin, he compared the asset to a form of digital gold that is not affected by inflation.
The Success and Mass Adoption of Bitcoin
In his discussion, Michael Sonnenshein put off some of the arguments that Bitcoin naysayers have put forward. He pointed out that the rise of Bitcoin is not just a craze but that key industry players are now interested in crypto adoption. One such player in the financial industry is PayPal. In October, PayPal announced the launch of its crypto services. The announcement came as a surprise to most people, and in a short time, other key industry players have moved in the same direction.
“I think they now understand that buying Bitcoin and storing it in their portfolio is a way of storing value, protected against inflation, a bit like digital gold (…) much more suited to the digital world we live in,” said Michael Sonnenshien.
More From Michael Sonnenshien
Michael Sonnenshien also noted that since these key players have adopted crypto, everyone should be convinced that cryptocurrency is a solution for the future. However, he also pointed out that the effects of the COVID-19 pandemic have greatly affected investors and banking institutions. As economic crises are brewing, Bitcoin solutions have been reconsidered by more and more investors.
The popular argument of “Bitcoin is not a currency because you can’t use it to pay for coffee” no longer stands because Bitcoin is now recognized as an important step towards money evolving. It is also a credible way to save capital. During the COVID-19 era, Bitcoin and other cryptocurrencies surprisingly reacted in a positive manner after the pandemic-induced market shock. This also increased the belief of many people that Bitcoin can give a good return on investment as a robust asset.
Another anti-Bitcoin argument that the Grayscale COO took umbrage with is the one that says the finite number of bitcoins limits the overall number of people who can be part of the BTC ecosystem. He points out that each individual BTC can be divided by 100 million. He goes on to argue that “taking into account the size of the world’s population, the possibility is given to all those who wish to invest in Bitcoin.” With these words, he believes that Bitcoin is an opportunity for all that wish to invest in it. Overall, the maximum number of satoshis is 21 million (the total amount of bitcoins to be produced) times 100 million.
At the time of writing, Bitcoin is currently trading at $19,335.50, with a 24-hour trading volume of $21,832,192,779 and a market cap of $358,946,717,822.
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