The price of bitcoin is soaring as a whole lot of new money is coming into the cryptocurrency economy. With new money flowing in it seems mainstream investors are catching wind of bitcoin’s benefits. Bitcoin is considered a safe haven from worldwide economies that are failing, as well as an asset class that is outperforming many traditional investments found today.
Also read: Australia’s Law to End Double Taxation of Bitcoin Stalled
Snapchat Investor Says One Bitcoin Will be $500,000 by 2030
This past February Bitcoin.com reported on how mainstream investors heard an awful lot about bitcoin’s performance as the asset grew considerably in value throughout 2016-2017. The price of bitcoin is still rising, and conventional investors continue to hear more and more about bitcoin’s market accomplishments.
For instance, as the price grows higher, it has created a media frenzy of mainstream news outlets reporting on the price increase regularly these days. This has created a snowball effect where conventional and institutional investors begin rallying behind bitcoin as a new asset class because they hear about how good it’s doing.
Just recently the first investor of Snapchat, Jeremy Liew said bitcoin is undervalued in a recent Business Insider presentation. During the presentation, Liew gave some fundamental reasons to why he thinks bitcoin will be worth $500,000 by 2030. Liew based his theory on factors like the rise of global remittances, economic uncertainty, and mobile penetration.
“Bitcoin is already simple to buy and hold, and as the asset continues to mature, we’ll continue to see an increase in the development and deployment of surrounding products,” Liew explains.
The Ultimate Insurance Policy Against Autocracy and Value Destruction
On May 4 Facebook investor and owner of the NBA team the Golden State Warriors, Chamath Palihapitiya, told his 67,000 Twitter followers that bitcoin is a defense against value destruction. Palihapitiya has been an advocate of bitcoin for quite some time and penned an article on how innovative bitcoin was for Bloomberg in 2013.
“I’ve told my friends that it is entirely rational to allocate one percent of your assets to Bitcoin — as I have,” explained Palihapitiya at the time. “Call it schmuck insurance. As the 2008 crisis proved, schmucks can cause a world of damage.”
Last week the venture capitalist investor told his Twitter followers;
Reiterating my belief about BTC. It’s the ultimate insurance policy against autocracy, currency curbs and other forms of value destruction.
It’s Hard for Investors to Ignore the Reallocation of Financial Strength
There is no doubt that investors are seeing the price headlines in Time Magazine, Bloomberg, and the New York Times. Alongside the positive statements from successful entrepreneurs like Liew, and Palihapitiya, mainstream investors are sure to hear about bitcoin in some form or another.
There’s no doubt there is fresh money coming into bitcoin and cryptocurrencies markets in general. Investors cannot ignore an asset that has grown into a substantial market worth over $25 billion while traditional markets flounder. Furthermore, those who invested in bitcoin early like Palihapitiya know the concept of cryptocurrency is on a path to disrupt financial incumbents.
“It will reallocate financial strength and power to the people versus keeping it within a few centralized authorities,” Palihapitiya concludes in his editorial.
Do you think conventional investors are pouring new money into bitcoin because of mainstream news headlines and a few popular entrepreneur’s public statements? Let us know in the comments below.
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