„These are the most sophisticated investors, […] it’s not about FOMO,“ Tyler and Cameron Winklevoss explained during an interview
Throughout the 2020s, a variety of traditional financial giants have been buying stacks of Crypto Revolt including well known billionaire Paul Tudor Jones and business intelligence firm MicroStrategy. These investments are part of a much larger flow of money into Bitcoin, Tyler and Cameron Winklevoss, founders of cryptocurrency exchange Gemini, recently said.
„These are the most sophisticated investors, the smartest people in the room, quietly buying Bitcoin.
It’s not about FOMO [Fear of Missing Out],“ Tyler said during an interview with CNBC. In his opinion, unlike in 2017, from now on institutions will focus on cryptocurrency.
This year, in addition to the aforementioned Tudor Jones and MicroStrategy, Stanley Druckenmiller, Square’s Jack Dorsey, MassMutual and Guggenheim Partners have also gotten some form of exposure in Bitcoin. For all of them, the reason is always the same: an unstable economic situation has made cryptocurrencies much more attractive.
Bitcoin is often compared to gold as a store of value and a hedge against inflation. Both Druckenmiller and Tudor Jones have publicly supported this theory.
Tyler Winklevoss then added:
„In addition, there are publicly traded companies like Square and MicroStrategy putting their money in Bitcoin because they are worried about inflation coming, with all the money being printed and the stimulus packages to counter lockdowns caused by the COVID pandemic.“
Regarding the inability to use Bitcoin in everyday transactions due to its extreme volatility, the Winklevosses explained that cryptocurrency is a „buy and hold“ asset comparable to gold:
„Right now we see Bitcoin as an emerging store of value that will supplant gold: in other words, Bitcoin’s capitalization will reach $9 trillion.
So really it doesn’t need to be used as a currency, its volatility doesn’t matter if actually used as a store of value.“
Regardless, the billionaire predicts that over time we will see a significant reduction in Bitcoin’s volatility.
At the time of publication, Bitcoin’s capitalization is $335 billion – still a far cry from the $9 trillion predicted by the two brothers.