Bitcoin Is Going to Grow Like Crazy
It’s always been the dream of Satoshi Nakamoto – the alleged creator of bitcoin and its respective technology – and fans of the cryptocurrency that bitcoin would be as widely accepted as cash, gold and stock shares. However, this hasn’t always been the case.
For one thing, the asset has received mixed signals from regulators, with some praising it, and others looking to instill full bans against it. This is the situation in India, which recently ruled that a certain law deeming relationships between crypto companies and traditional banks was not allowed. This law was later deemed unconstitutional and reversed by the country’s Supreme Court.
However, now India has commented that it’s considering a full trading ban on the asset, meaning nobody would be able to own it, buy it or sell it. This is huge considering India is one of the largest countries in the world, and its decision to ban bitcoin would put it behind neighbors such as China.
In addition, very few retailers have accepted crypto given that it is still very vulnerable to price swings and volatility, and to a certain degree, we can’t blame them for saying no. For example, if you go into a store somewhere and buy $50 worth of merchandise with bitcoin, all may seem done and sealed. However, if the price of bitcoin falls the next day and that $50 turns into $30, you’ll still walk away with everything you bought, but the store will have lost some money, which isn’t entirely fair to the retailer.
But according to Bessemer Ventures – which has invested in major tech platforms such as Twitch, LinkedIn and Pinterest – bitcoin is likely to become globally accepted as an asset class all its own. In a recent blog post, the company wrote:
We strongly believe bitcoin will become a globally accepted asset class that institutions will increasingly seek portfolio exposure to, given its asymmetric risk profile, scarcity characteristics, and ability to serve as a digital store of value. With the rapid expansion of central bank balance sheets around the globe, bitcoin is poised to serve as ‘digital gold’ and a hedge against future inflation.
Worldwide Acceptance Is Coming
This seems to be the idea amongst multiple investors, who now see crypto as a means of hedging one’s wealth against economic strife ever since the coronavirus pandemic first began striking against global financial markets last March. The blog post continues with the following:
Institutional demand for this emerging asset class has hit an inflection point. The technical hurdles and regulatory friction have made it difficult for institutions to invest and manage these new stores of value – until now.