Fading stigma prompts rich investors to buy Bitcoin

Many wealthy investors have dabbled into Bitcoin already. Some of these have already earned good returns from their investments. Unfortunately, some rich people ignored the rush into Bitcoin investments. Essentially, investing in Bitcoin is compared to gambling for such people. That’s because they think this virtual currency lacks any value.

However, some wealthy investors are regretting their decision not to purchase Bitcoin early. That’s because this digital currency has continued to increase in value. Today, some wealthy investors are rushing to invest in Bitcoin because the virtual currency has earned its place in diversified portfolios.

Since its one-year low in March, Bitcoin has surged over 270%, prompting more investors to ratchet up their investments in the crypto space while eyeing significant gains. Some investors are looking for opportunities to trade this digital currency. And platforms like BitQT are proving to be valuable tools for such investors. That’s because such websites allow these people to buy and sell Bitcoin for profits within a short time.

Wealthy people with Bitcoin investments

Armbruster, a London-based investment company owner managing around $670 million, is among the people with Bitcoin investments and looking for trading opportunities for this cryptocurrency. Others include Ricardo Salinas Pliego, a Mexican media billionaire that announced his 10% liquid assets investment in Bitcoin. Stanley Druckenmiller, Bill Miller, and Paul Tudor Jones are all Wall Street’s legends that have endorsed Bitcoin investments.

An influential financial manager, Rick Rieder, announced that Bitcoin is going nowhere during an interview with CNBC. Over 874 people watched this clip on Twitter, getting more views than a segment he had made on monetary policy and COVID-19.

What this means

The increasing number of wealthy investors buying Bitcoin means that this virtual currency has caught many people’s imagination and attention. However, this virtual currency still has a small market and is untested when compared to other markets.

In 2017, Bitcoin’s price skyrocketed, but many affluent investors remained on the sidelines. Some people compared ersatz money to the Dutch Golden Age’s tulip mania. Many individuals saw its utility as a tool for laundering money in the underworld. And this scared of some mainstream financial players. For instance, Warren Buffet described Bitcoin as a mirage while Jamie Dimon considered it a fraud.

Nevertheless, Bitcoin hasn’t proven itself a universally accepted form of money. Some affluent investors believe alternatives like Ethereum could prove to be more valuable. Additionally, the markets where people trade cryptocurrencies are opaque. Arcane technology and rampant speculation drive these markets. Thus, they lack the easy-to-see fundamentals for commodities, bonds, and stocks markets.

Nevertheless, affluent investors have changed their minds and are now giving Bitcoin a more serious thought and look. That’s because some influential players like Visa and PayPal have given Bitcoin mainstream acceptance. Today, account holders can use Bitcoin on these platforms.

What’s more, the 12-year old blockchain technology and stability bolster confidence that Bitcoin is here to stay.

Exploring more Bitcoin investment opportunities

Some investors are looking for more Bitcoin-related investment opportunities. For instance, some individuals are looking for new financial software and databases whose inspiration is Bitcoin. Some wealthy investors have already allocated distributed blockchain ledger technology funds.

Some governments and central banks are also focusing on flooding economies with money while dropping interest rates to almost zero in their efforts to deal with the coronavirus pandemic. Such moves aim to provide fiscal stimulus while burnishing the credibility of cryptocurrencies as alternative assets.

Final thoughts

It’s no doubt that events like the COVID-19 pandemic, Brexit, and the US election have changed how people see traditional finance. They have also altered how people value Bitcoin and other digital assets. The duration that this trend is likely to last remains unknown. Nevertheless, more wealthy investors are rushing to buy this digital currency due to its stability and increasing value.