Bitcoin has risen as one of the most valuable assets in human history. It has been increasing in value at an exponential rate. Since its genesis, it has been climbing in value. It took Bitcoin around 10 years from its infancy to its current market dominance.
Bitcoin’s rise as the new asset class
Given the recent covid pandemic and the global economic crisis, many countries around the world are facing a financial collapse. The US continues to increase dollar printing causing many to fear a deflating dollar. The pandemic has caused uncertainty resulting in entire economies to come to a halt. Investors facing stock market uncertainty and wealth depreciation are now seeking alternatives. As interest in cryptocurrency becomes mainstream, people are turning to a new asset class called Bitcoin. Large financial institutions, corporations, and funds are pouring billions into Bitcoin and bitcoin related products. Bitcoin is emerging as a new asset class. Investors facing uncertainties in the global stock and financial markets are turning to Bitcoin due to its high returns, long term growth opportunity, limited supply to keep its value and grow in the long term. As more and more investor dollars are entering the cryptospere, the price and value of Bitcoin soared to new heights. Acceptance from large corporations, financial institutions cemented bitcoin as a new asset class.
Corporate interest and investment in Bitcoin
Public companies like Tesla, Microstrategy, Square, and large financial institutions investing in Bitcoin have sparked massive interest and gains, just in the span of a year and a half. According to CNBC, Elon Musk, CEO of Tesla Motors has invested $1.5 Billion in Bitcoin alone. The company has publicly added bitcoin to their balance sheet and showing support for bitcoin’s future. Other multi-billion dollar companies are beginning to notice and follow. Palantir Technologies has expressed an interest, as well as other major companies, to purchase Bitcoin for their balance sheets. In March, at the start of the pandemic, according to Coin Market Cap, the price of Bitcoin was at $3,761 and by the end of March it climbed to $4000. As the pandemic continued, more and more investors, including retail investors started to invest in Bitcoin and other cryptocurrencies. Companies, like Robinhood, also allowed investors access to various cryptocurrencies, launched bitcoin to the retail investor. This combined with a large amount of interest from corporate sectors has allowed bitcoin to emerge as the new asset class. At its peak, it reached over $63,000 on April 14, 2021. Bitcoin emerged as an asset, better than gold. Bitcoin’s accomplishments are nothing but incredible. The overall performance of Bitcoin in the short and long term is quite promising and impressive attracting more investors.
Bitcoin’s Trillion-dollar value
According to Coin Gecko Bitcoin was able to reach a $1 Trillion market capitalization. As the market prices fluctuate, this will continue to increase. Bitcoin held its $1 Trillion market capitalization for 1 week. Analysts have predicted Bitcoin’s momentum and believe it to increase over the end of the year. According to The Wall Street Journal, BNY Mellon, is also entering into the Bitcoin and digital assets market, among huge interests from its clients. Companies continue to embrace bitcoin and digital assets and hope to secure returns for their clients. BNY Mellon plans to serve its institutional investors by providing a custodian service for digital assets. BNY Mellon has not disclosed the size of its investments in any digital assets.
Bitcoin goes mainstream
Bitcoin’s price has bolstered as the mainstream accepts bitcoin adoption, and as more and more institutions like Grayscale, Tesla, BNY Mellon focus on their investments into Bitcoin and Bitcoin-related products. Bitcoin certainly has immense interest and has captured billions of dollars of new investment. As this trend continues to grow, Bitcoin will dominate the digital asset market.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.
