It looks like wealthy people are beginning to view bitcoin as an essential ingredient of their portfolios, and many are wishing that they had gotten involved in the world of cryptocurrency sooner.
Bitcoin Has Attracted the Attention of Wealthy Investors
This is the case for Christian Armbruester, the founder of Blu Family Office in London. As an investor for wealthy clients, Armbruester claims that while he might have dabbled in crypto here and there, he never really took it seriously until this year following the asset’s incredible surge of more than 160 percent since mid-March. At the time, bitcoin was trading for under $4,000, but it has since skyrocketed into the $19,000 range.
Christian says that he and his office have primarily focused on precious metals and manufacturing. While he has certainly built healthy portfolios for his clients through these two environments, he believes that crypto has earned its place on the financial ladder this year, and that everyone should be looking at bitcoin as a necessity.
In a recent interview, he stated:
We’re now looking for trading opportunities in a very exciting field.
Throughout 2020, many institutional investors – from MicroStrategy to Square to Stone Ridge – have set their sights on bitcoin and invested millions of dollars into the world’s number one cryptocurrency by market cap. In addition, several investment offices are now looking to find ways for their clients to invest in crypto either directly or indirectly.
Larry Fink – chief executive officer of Black Rock – mentioned in a statement:
[This] tells us that bitcoin has caught the attention and imagination of many people, but it’s still untested and a pretty small market relative to other markets.
The funny thing about bitcoin is that it’s not even being used for what it was initially intended for. Back in 2008, when the currency’s whitepaper made its first public appearance, it was discussed that bitcoin would serve as a payment currency – one that can be utilized to purchase goods and services like standard cash or credit cards.
However, the currency has not been largely used for payments considering it remains a very volatile asset. It is vulnerable to price swings, and thus many companies are not willing to take a chance on the profits they may or may not lose. There is still too much up-and-down behavior in the world of bitcoin.
A Store of Value
But since the beginning of the year, the currency has taken on new form. Now, it is viewed as a hedge tool; something that can be used to protect one’s money during times of economic strife. This potentially explains why the asset has grown so much, and why so many family offices are willing to put everything they have into it.
With fiat currencies going downhill and the price of gold virtually incomparable, bitcoin just seems like the right alternative.