The fortunes of Bitcoin have changed in the last few years. The cryptocurrency moved from what used to be an ignored asset to what is now an investment opportunity where several big firms are committing their investors’ funds and profit reserves. Individuals’ investments in Bitcoin has also been on the rise, with recent data suggesting out of every ten investors, 4 of them have Bitcoin assets. Recently institutional adoption and investment in cryptocurrency have been on the rise, as Michael Sonnenshein, the CEO of Digital Asset Management firm- Grayscale, believes that many large firms and organizations will commit to Bitcoin.
Sonnenshein believes profit will drive high institutional investment in Bitcoin
Many investors’ preference has tilted in the last 24months towards cryptocurrencies like Bitcoin, Ethereum, and Co., as against regular investment options like securities, stocks, mutual funds, bonds, etc. Several firms have now continued to follow that part in the last 12months in a bid to maximize business profit. Michael Sonnenshein believes that the earlier criticism that Bitcoin has suffered in the hands of many of the popular prominent business figures who are now investors will further increase the institutional adoption of the cryptocurrency.
Sonnenshein feels like Musk’s influence, whose company Tesla had recently committed about $1.5 Billion of its portfolio to Bitcoin, will be one of the biggest institutional investment influencer of the digital assets. Prior to Musk’s, Micheal Saylor’s Microstrategy spent the whole of last year buying Bitcoin, grossing to about $1.4 Billion. Sonnenshein believes that many large corporations will secretly or publicly follow these investors’ footsteps. A move before now will not make sense to anyone.
Social Influencing boosting institutional adoption of Bitcoin
While the sole reason behind institutional adoption and investment in Bitcoin has been attributed to maximizing profits, it is worthy to note that social influencing has been one of the factors driving the digital asset’s high institutional adoption. From Jack Dorsey regularly promoting Bitcoin on his official Twitter handle to Elon Musk regularly mocking and inquiring about the cryptocurrency on social media, the list goes on.
Micheal Saylor is also known on social media, always influencing the fortunes of the cryptocurrency, from providing advisory services to intending investors to answer questions about the cryptocurrency. Many large firms are continuing to explore the idea of investing in Bitcoin, and according to Sonnenshein, he believes that the year will witness more shocking institutional adoption of the digital asset, especially from prominent large corporations.
Analysts have predicted that the high institutional adoption of the cryptocurrency is a factor that will drive prices high, so this is good news that is good for Bitcoin and the community. So, everyone’s expectation will be towards increasing institutional adoption, and the boom of the digital assets predicted to reach $100,000 before June.