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The world’s largest cryptocurrency manager says bitcoin is the next step in the evolution of money – and “I can’t use it to buy coffee” is no longer a strong argument | Currency News Financial and business news



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  • Bitcoin is not a fad that will go away, said Michael Sonnenstein, managing director of Grayscale Investments.
  • Investors understand that “buying bitcoin and putting it in their portfolio should be a stock of value, an inflation hedge, digital gold, a digital form of money,” Sunshine told Business Insider.
  • Investors should not be hooked on the fact that there are only 21
    million bitcoins that will ever exist, because each coin has 100 million units.
  • Investors like the fact that they can buy part of the coin and add to their position over time, said the crypto asset manager.
  • Visit the Business Insider homepage for more stories.

Bitcoin is not a fad, and the impossibility of using it to buy a cup of coffee is not a reasonable argument, according to Michael Sonstein, managing director of Grayscale Investments, the largest asset manager in digital currency.

The growing involvement of key players in financial services “really speaks to the remaining strength of the asset class and confirms other people are getting involved,” he told Business Insider in an interview.

Sonnenshein, whose company controls nearly $ 11 billion in crypto assets, said this year’s global pandemic was another key driver behind bitcoin investment. Grayscale has seen investors with different motives and appetites to distribute the digital token to their wallets this year.

Investors no longer stick to the idea that because we don’t use bitcoin to buy a cup of coffee, it has failed as a currency, Sonnenshein said.

Read more: “I still think there’s a long way to go”: The crypto CEO breaks down why he’s a bull with bitcoin, even after it rises to $ 18,000 – and shares the other cryptocurrency he thinks is here to stay

“I think today they understand that buying bitcoin and putting it in their portfolio should be a stock of value, an inflation hedge, digital gold, a digital form of money that is much more appropriate for the digital world we live in today. compared to historical reserves of value such as gold, which would certainly be much more applicable to a world characterized by physical exchange. They see it as one of the most important next steps in the evolution of money and what constitutes a stock of value. ”

After the pandemic halted money markets earlier this year, Bitcoin’s resilience and demonstration of resilience show it is one of the best returns on investment, he said.

To skeptics who question the validity of the symbol in conventional financial institutions, he said: “Bitcoin was born outside the realm of traditional financial services, it was not born in an arena where it should be traded on the stock market or that it will be kept in the same way as shares or bonds. “

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

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Each coin is divided by the eighth decimal place, which means that there are 100 million units in each bitcoin. This is one of the characteristics of the asset that investors like because they can only buy part of the coin and add overtime to their position, Sonnenshein said.

“When you think about how many millionaires or billionaires or even what the global population is, there are 21 million bitcoins multiplied by 100 million units in each bitcoin,” he said. “Anyone who wants to get involved can have a piece of the bitcoin protocol.”

This year, the most popular cryptocurrency in the world took off. It has risen 117% so far in 2020, and its price exploded above $ 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 the token. Jack Dorsey Square, a payment company, invested nearly 5,000 bitcoins in October, US technology firm Microstrategy bought 16,796 coins, and the British start-up regime also joined the rage. Crypto bulls say it is only a matter of time before it is widely accepted.

Read more: Buy these 15 cheap, unforeseen stocks that will take off in 2021, thanks to their accelerating sales growth, says Jefferies


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