2020 has been a crazy year, to say the least, as the entire world has been facing a horde of problems at this time. However, this year has also turned out to be one of change, as a significant number of traditional financial giants have decided to make their way into the Bitcoin (BTC) space. Some of the biggest names include those like MicroStrategy, the cloud-based business intelligence company, along with billionaire investor Paul Tudor. These investments were noted by Cameron and Tyler Winklevoss and they explained that this was part of why such a huge amount of money is being pushed into Bitcoin.
As a matter of fact, the Winklevoss Twins had gone as far as stating that the smartest investors in the market were quietly purchasing Bitcoin. As such, the twins don’t believe that this buying up is only because of the Fear of Missing Out (FOMO). These statements were made by Tyler in an interview that had been published on Friday by CNBC. Tyler said that another key factor to take into account was the fact that this huge bull-run in BTC is being headed by institutional investors rather than their retail counterparts, as opposed to the great bull-run that had taken place in 2017.
Once that had come to an end, it had brought about a crypto winter. During this year, a lot of people and companies have gained exposure to the leading cryptocurrency in the world, such as Jack Dorsey’s Square, MassMutual, Guggenhein Partners, MicroStrategy, Tudor Jones, and Stanley Druckenmiller. This huge boost in crypto adoption comes as governments all over the world have begun to print out more money for stabilizing the economy, which will result in drawbacks in the long-term. Things couldn’t have been better for Bitcoin and there are some people out there who believe that Satoshi Nakamoto orchestrated the whole debacle for leading the world into a completely new digital age.
During this year, people have compared Bitcoin to gold several times, and the general sentiment is that the former can serve as a general store of value, along with an inflation hedge. It is this particular narrative that aligned both Druckenmiller and Tudor Jones and drove them into the space as a whole. This prompted Tyler Winklevoss to claim that these publicly-traded companies, such as Square and MicroStrategy have also been shoring Bitcoin.
He went on to say that these companies are very concerned about the eventual inflation that will happen because of the extra money being printed and this will degrade the treasury over time. As far as the personal opinion of the Winklevoss twins is concerned, they believe that Bitcoin should be handled in the same way as gold i.e. investors should go with buying and holding. In fact, the twins are of the opinion that Bitcoin will end up disrupting the gold market and said that volatility is not that big of a problem considering that it is a store in value. But, they do expect this volatility to fall.