Co-founders of the Gemini Exchange, Tyler and Cameron Winklevoss continue to praise Bitcoin, noting that it is now increasingly attracting institutional investors. The key: a 30-fold increase in the value of cryptocurrencies.
Bitcoin, a simple fashion doomed to disappear like other cryptocurrencies? No, replies Wells Fargo. The bank reminds investors that fashions don’t last 12 years. In short, Bitcoin is part of the financial landscape for the long term.
But what about its value? For ardent promoters like the Winklevoss twins, Bitcoin’s progress will not stop at its current price of 19,000 dollars. The founders of the Gemini crypto exchange had the opportunity to reiterate their conviction in an interview.
“Our thesis is that Bitcoin will be multiplied by 30 from here because it is digital gold, it disturbs the gold” they declare to Real Vision.
Real Vision manager, Raoul Pal, recently announced that the company now holds 10% of its liquid assets in Bitcoin. “That’s only 10%. What’s the worst that could happen? Bitcoin drops by 50% and we lose 5% of our cash” he justified.
However, Real Vision is not alone in betting on cryptocurrency. A growing number of institutional investors are exposing themselves to Bitcoin, such as the insurer MassMutual, for example, to the tune of 100 million dollars.
“The major institutions are there for this tour de force, unlike Bitcoin’s 2017 bull run driven by the retail sector,” Tyler and Cameron Winklevoss are quick to point out. This argument does not escape the attention of JP Morgan analysts either.
“MassMutual’s purchases of Bitcoin represent a new milestone in the adoption of Bitcoin by institutional investors,” they told Bloomberg. This investment could be a real wake-up call.
The bank estimates that demand for Bitcoin could grow by $600 billion. However, this presupposes that pension insurance companies in the United States, Europe, the United Kingdom and Japan allocate 1% of their assets to the queen of cryptocurrencies.
An unlikely scenario? Not entirely for JP Morgan. According to her, the choice of MassMutual suggests a growing interest of insurance companies and pension funds in Bitcoin. Especially as wealthy investors and family offices are also increasing their demand.