Tyler Winklevoss: „The smartest of the smartest buy Bitcoin quietly“
Over the course of 2020, many well-known players in the traditional financial sector have invested in Bitcoin (BTC), including investment guru Paul Tudor Jones and software manufacturer MicroStrategy. However, they are only the vanguard of a whole flood of funds that will soon be flushed into the market-leading crypto currency by major investors. At least that is what Tyler and Cameron Winklevoss, the founders and operators of the crypto exchange Gemini, think.
„These are the smartest investors, the smartest of the smart are quietly buying Bitcoin right now, so there is no last minute panic (FOMO) behind this,“ as Tyler accordingly says in an interview with the TV channel CNBC. He sees institutional investors as the driving force behind Bitcoin’s current boom, and not the small private investors as in the big crypto hype of 2017.
In addition to Tudor Jones and MicroStrategy, Stanley Druckenmiller, MassMutual, Guggenheim Partners and Square, the payment service provider operated on Bitcoin Bank by the head of Twitter, have also invested in Bitcoin this year, although this decision is probably largely due to the uncertain economic situation and the loose monetary policy of the central banks.
Bitcoin is often interpreted as a store of value and „safe haven“, a narrative that Tudor Jones and Druckenmiller also agree with
Tyler Winklevoss adds to this in an interview:
„In addition, listed companies such as Square and MicroStrategy are now investing their corporate assets in Bitcoin because they are afraid of the threat of inflation, which is hanging over us like a sword of Damocles due to the continuous printing of money and Corona aid packages.
When asked whether Bitcoin is suitable as a means of transaction due to the high volatility of the crypto currency, the Winklevoss twins reply that Bitcoin is much more of a financial product that should be „bought and held“ because, as Tyler explains, they see „Bitcoin as an emerging store of value that can compete with gold, and the market capitalisation of Bitcoin is as high as 9 trillion dollars. US dollar“. The crypto-currency would therefore not have to be usable as a means of transaction at all, which in turn would mean that volatility would not be a disadvantage either. Moreover, volatility would decrease over time anyway.
At the time of going to press, the market capitalisation of Bitcoin amounts to 335 billion US dollars, which is still far from the forecast 9 trillion US dollars. US dollar, despite the fact that this year the previous record high of 2017 was broken.