To the delight of Bitcoin investors everywhere, the price of Bitcoin has been on the rise since early April. Any time an investment doubles or even triples in value over the course of a fiscal quarter is cause for celebration for long-term investors.
This is especially true, however, for Bitcoin. After languishing for over a year in the brutal cryptocurrency bear market of 2018, this upswing is a welcome relief.
Over the course of six weeks, Bitcoin prices doubled to numbers approaching $8K USD. After a month-long interlude where prices hovered in the $8K range, Bitcoin again shot up another $4K, landing in the $11K-$12K range, where they still stand.
Expert predictions
Investors have long been convinced that the lull in Bitcoin value over the past year is completely temporary. Michael Novagratz, CEO of Galaxy Digital, predicts that Bitcoin will beat ATH prices, hitting $20K and beyond. He expects this price increase to take place within the next 18 months.
Novagratz’ estimate is on the conservative side, especially since he also alludes to the unlikelihood of other cryptocurrencies following suit at a similarly rapid rate.
Regardless, now is looking more and more like a great time to invest in Bitcoin.
The surge in price is coupled with recent news pointing toward mainstream financial opportunities for cryptocurrency. Facebook’s June 18 announcement of the upcoming release of its Libra stablecoin, backed by finance and commerce heavy hitters such as Mastercard, Visa, PayPal, Stripe, and PayU has garnered media attention.
Between this news and the rising price of the cryptocurrency, traditional fiat investors have been taking note of cryptocurrencies. Interest in investing in digital currency is on the increase.
At the end of June, billionaire Henry Kravis, co-founder of global investment firm KKR & Co. and renowned investor and philanthropist, invested in a cryptocurrency fund through new cryptocurrency investment firm ParaFi Capital. Spokespeople for both the fund and Kravis have yet to provide details of the investment.
This is not exactly Kravis’ first exposure to crypto. ParaFi Capital founder and CIO Ben Forman originally worked at KKR. According to Forman, ParaFi was modeled to be the KKR specifically for cryptocurrency. Forman states:
“While I toyed with the idea of pursuing blockchain investing within KKR, it was clear to me that the firm did not provide the optimal format to do so. Instead of pursuing crypto at KKR, I wanted to build the KKR of crypto.”
Smart investing
ParaFi is not the only new investment firm dedicated to projects within the blockchain ecosystem. A number of new digital currency asset managers, dedicated to cryptocurrency investment opportunities, have emerged recently.
The only way a blockchain company is surviving and thriving these days is with an interesting concept that clearly meets an unmet need. Several firms meeting these criteria have stepped up.
AMFIEX touts itself as the world’s first pseudo-anonymous blockchain trading fund. Entirely decentralized and maximally transparent, the investment platform is poised to appeal to cryptocurrency purists.
Additionally, the only fee the platform charges is a 20 percent profit fee. This is a refreshing change from other platforms, where at times, it seems a fee is charged for everything.
Grayscale Investments is one such firm. Don’t let the ominously GoT-esque name fool you. The asset management company is dedicated to the strong belief that gold’s $7 trillion industry will be replaced by Bitcoin, currently worth $92 billion.
Despite the enormous price discrepancy that currently exists between the two markets, Grayscale believes this change is coming soon. The company bases this on the natural trajectory of today’s society. Generations raised with an awareness of the value of digital assets of all sorts, and without the gold standard, lend themselves to this inevitable outcome.
Firms like these are battling against the likes of Gemini, controversial from day one due to its entirely centralized basis.
Opening opportunities
Other issues within trading platforms and investment firms, such as the increasing disappearance of investor assets, or the revelation that most cryptocurrency trading is completely fake, have created an industry ripe for fresh, new platforms and investment opportunities.
Regardless, in much the same way fiat investors have followed the advice of the likes of Warren Buffett, usually with remarkably successful results, now could be the time to take note of the increased interest in crypto shown by top investors. For the average investor, it could be the difference between a lifetime of success or a lifetime of regret.