‘Enough Time’ is needed to fully understand Bitcoin.
CEO James Wo of Digital Finance group said that it may take time for millennials to fully understand Bitcoin. He said that It just needs sufficient time for everyone to adopt it.
Considering a $178 Billion market cap compared to gold which has an $8 trillion asset, Mr. Wo suggests that there’s still a lot of room for growth.
“Gold has an eight trillion-dollar valuation, while bitcoin has less than $200 billion dollars in valuation. It just needs more time for mainstream adoption. People need enough time to fully understand and believe in it.”
A Yougov Poll released last October 2019 stated that 80 percent of Americans already knew about cryptocurrency. And the fact that more than 20 percent of Millenials bought Bitcoin in recent years is proof that they are familiar with it. Investors are clearly expecting a surge in Bitcoin although it went through an adjustment which reduced its rate, it may take a few months or a year to recover.
Around 40 percent of Americans believed that cryptocurrencies will be accepted soon in the 2020s.
Millennials are more hopeful about cryptocurrency than any other generations while 35 percent of them are familiar with cryptocurrency and say they believe that it is definitely a good investment.
Along with more than 100,000 merchants worldwide adopting Bitcoin, it has been a big step for most retail businesses.
According to a U.Today report, Tim Draper, a venture capitalist, is seeing that the Bitcoin value will soar high up to $250,000 if it will become just at least 5 percent of the currency market by the year 2023.
While the Blockstream CEO Adam Back believed that the retail investors can even drive Bitcoin up to $300,000 while in a bull run. Back is convinced that investors are now converting to Bitcoin because of ‘money printing’.
Despite the fact that retail investors were affected by the 2018 bear market and are still hesitating to fully grasp into Bitcoin, there is finally a strong institutional demand for cryptocurrency exchange.
The Bitcoin Investment Trust (GBTC) is an investment vehicle operated by Grayscale. It lets accredited and institutional investors trade bitcoins.
GBTC Bitcoin premium at 24%, showing a gradual increase in institutional Demand.
Most accredited and institutional investors are unable to invest in bitcoin due to various restrictions. It requires strictly regulated policies that are governed by financial regulators.
Investors pay a premium to GBTC, which offers certain safeguards and eliminates regulatory risks, while most existing crypto exchanges do not have.
$3.5 Billion worth of assets from Grayscale’s GBTC fund that is under management, while its purchasing power overtakes newly mined coins up to 1.5 times.
Danny Masters, Coinshares CEO, said that their inflows definitely show very high institutional demand.
“When we look at institutional inflows for our products and that of another asset manager, what you’re seeing are purchases that have now outstripped, for the first time, new bitcoins being created by 150%.”