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Grayscale purchases another 8,000 BTC
Grayscale purchases another 8,000 BTC
Bitcoin

Grayscale purchases another 8,000 BTC

By Eleonora Spagnolo - 4 Dec 2020

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Grayscale has purchased an incredible 8,000 BTC to increase the Grayscale Bitcoin Trust

This is revealed on Twitter by trader CryptoNTez.

This choice comes a few days after the rumour that Guggenheim Partner is prepared to invest $500 million in Bitcoin through the Grayscale Bitcoin Trust.

In any case, even if the two episodes are not linked, the purchase of an additional 8,000 BTC will increase the fund intended for institutional investors. At the current price, 8,000 BTC correspond to approximately $156 million.

Grayscale is simply riding on the interest of institutional investors in the queen of cryptocurrencies. According to some experts, this interest is and will be the basis of the current and future growth of the price of Bitcoin. And which distinguishes the growth of 2020 from that of 2017, which culminated with the bursting of the speculative bubble in early 2018.

Grayscale’s report on Bitcoin

Grayscale shares its black on white analysis in an accurate report.

First, the document reveals that in 2020, 55% of US investors are interested in Bitcoin. This percentage was 36% in 2019.

In addition, 38% of Bitcoin investors in 2020 bought BTC during the Covid 19 pandemic, and in 63% of cases, it was the pandemic that drove investments into Bitcoin

Those who choose Bitcoin, according to Grayscale, do so because they are motivated by the fact that you can invest even small amounts of money that can then grow over time. 

But what drives the growth of interest in Bitcoin is not only the pandemic but also its characteristics:

  • Scarcity,
  • Verifiable nature,
  • Lack of correlation with global markets,
  • Autonomy with respect to governments. 

Bitcoin’s main focus is on young people, millennials and GenX. They are the ones who will increase investments in Bitcoin. 

The conclusion of Grayscale is the following: 

“While financial advisors play an important role in this ecosystem, and may play a bigger role in the years ahead, the data shows that this digital currency revolution has largely been driven from the ground up, by a new generation of well-educated investors who leverage the vast amount of information available online to inform their investment choices”.

When this generation grows and invests, Bitcoin’s best time will begin

“As this digital generation grows up, it’s only natural that they may turn to more digital forms of value. The fact that the majority of current and potential Bitcoin investors haven’t even reached their prime earning years yet, coupled with the $68 trillion dollar wealth transfer set to take place over the next 25 years, reveals a potentially huge opportunity for those who see the possibility for long-term growth in Bitcoin”.

Finally:

“Digital currencies have come a long way in the last decade—but the growing momentum from investors interested in this digital asset class suggests that its brightest days may still be ahead”.

The best is yet to come for Bitcoin.

 

Eleonora Spagnolo
Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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