Bitcoin has often been described as the “digital gold” of the 21st century, but is the cryptocurrency truly reliable as a new safe haven against financial uncertainty and inflation? The question is a difficult one to answer, but the actions of a number of major institutions and the sentiments of some well-renowned investment managers suggest that Bitcoin (BTC) is becoming more attractive as a hedge against these fears.
Business analytics firm MicroStrategy has led the institutional charge into Bitcoin over the past six months, having purchased more than $1 billion worth of BTC after adopting the cryptocurrency as its primary treasury reserve asset. The company now holds approximately 70,784 BTC.
MicroStrategy’s CEO, Michael Saylor, has been abundantly clear in his assertion that the preeminent cryptocurrency is a superior store of value over fiat money, and he’s put his Bitcoin where his mouth is since August 2020.
Meanwhile, Grayscale Investments has been vacuuming up Bitcoin in recent months and has firmly established itself as the largest digital asset manager in the world. Grayscale’s Bitcoin holdings are a significant contributor to its overall portfolio, with its roughly 648,000 BTC valued at over $20 billion, according to the latest data from the firm.
Following in the footsteps of these proverbial Bitcoin trailblazers, SkyBridge Capital launched its own Bitcoin fund in December 2020. Skybridge was founded by American financier and former White House Communications Director Anthony Scaramucci, who has delivered some very bullish statements about Bitcoin’s future as a safe-haven asset.
Scaramucci and SkyBridge executive Brett Messing penned an op-ed published by CNN that portrays BTC as an increasingly attractive option for long-term investors looking for shelter from inflation. The pair said that increased regulation, improved infrastructure and financial institutions offering exposure to cryptocurrencies have “made bitcoin investments as safe as…