With Bitcoin once again in the public eye after reaching a new all-time high last month and its price rising by more than 150% in 2020, Grayscale Bitcoin Trust is offering mainstream investors access to the recently heralded “ era of digital gold».
The era of digital gold
The price of Bitcoin has soared this year, rising to new heights due to the growing institutional investment awareness that BTC has become a de facto means of saving, and can be used to hedge against currency devaluation. When public interest peaks, Grayscale can’t miss the opportunity to offer retail and professional investors entry into the digital gold era.
The company posted on Twitter: “Be bold in the age of digital gold with Grayscale Bitcoin Trust, your path to investing in Bitcoin”.
Bitcoin as a narrative of digital gold is becoming more and more common. According to Mike McGlone, senior product strategy specialist at Bloomberg Intelligence, whose recent report supports this position, said on Twitter:
“In a world that has moved into the digital age, Bitcoin can surpass gold. The past year has been a stepping stone for Bitcoin into the mainstream of investment portfolios and for the digital evolution of money, which should keep the benchmark cryptocurrency on an upward trajectory in 2021.”
Path to Bitcoin adoption
Although there is a growing consensus among institutional players such as Microstrategy CEO Michael Saylor that bitcoin can be a means of saving, not everyone thinks so, or is so confident about it.
Banking giant Wells Fargo at the same time called Bitcoin the main asset of this year, and called it a “speculative” investment. In its report, Wells Fargo compares investing in cryptocurrency to the early days of the 1850 gold rush. However, according to Gavin Smith, CEO of Panxora, their research ignores various key facts about the crypt. Smith said:
“Just as the gold market today has nothing to do with the “gold rush” mentality of the 1850s, the cue Ball has now become a means of saving, which is used at a time when people are afraid of currency devaluation”.
As reported by the Blockchain. News, Tom Jessop, President of Fidelity Investments ‘ digital asset division, said last Thursday that his firm still uses the word “potential” when describing the volatile Bitcoin’s ability to act as a store of value, even though many investors seem to simply sell BTC.
While Panxora CEO Smith agrees that Btcoin still shows high volatility, he believes that classifying BTC as a speculative instrument is no longer appropriate.
Smith said in an email to Blockchain.News:
“Back in 2017, Bitcoin could be considered mainly as a speculative tool, but this is no longer the case. The BTC shows high volatility which is typical for any new asset. But there is a growing awareness among institutional investors that there is a reliable option to use Bitcoin alongside gold as a hedge against currency devaluation. This is evidenced by the growth of Grayscale Trust and companies such as Microstrategy, which place a quarter of a billion dollars in PTS as part of their asset management strategy.”