Bitcoin to receive “Tsunami” of new investment according to Tyler Winklevoss
Tyler Winklevoss, who is a long time Bitcoin investor and co-founder of Gemini, sees Bitcoin being hit by a huge wave of new buying. According to the entrepreneur, Bitcoin's fundamentals are stronger than ever, thanks to inflationary pressure in the US monetary system. The Federal Reserve has expanded its balance sheet by at least $3 trillion this year, and it may have to take further measures in the near future to support the economy.
First, it was @michael_saylor and publicly traded @MicroStrategy buying $425million of #Bitcoin. Today, it is @jack and @square buying $50million of bitcoin. Tomorrow, it will be another visionary leader, and another, and another...the tsunami is coming https://t.co/MjF5z6u7ha
— Tyler Winklevoss (@tylerwinklevoss) October 8, 2020
Why it matters: Bitcoin is well supported by its limited supply and widening role in the global economy. The real trend to keep an eye on is institutional investment, which was lacking in the Bitcoin rally of 2017. At the time, Bitcoin was the subject of criticism by major investment banks, many of which now support some form of investment in crypto assets. Much like the gold market, major investors are likely to opt for delivery of actual Bitcoin, and not futures contracts that are settled in fiat currency. This will act as another support for the Bitcoin price, which is likely to rise in the coming years.