According to MassMutual’s Chief Investment Officer Tim Corbett, bitcoin could be a store of value in the long term.
Massachusetts Mutual Life Insurance Company, better known as MassMutual, is a US company that provides financial products such as life insurance, income and assistance insurance and private pension funds.
Bitcoin as a future store of value according to MassMutual
It has existed since 1851, and is one of the largest companies in the US by revenue, with over 7,000 employees in the US alone, and around 10,000 in total.
Tim Corbett is the company’s Chief Investment Officer (CIO).
In a lengthy post on LinkedIn yesterday, talking about his vision for the evolution of Bitcoin, he pointed out that MassMutual, being a company that has been around for over a century and a half, has already seen enough change over time to know what evolution means in the long run.
MassMutual entered the crypto sector last year, investing $100 million in BTC, so they know Bitcoin and its long-term characteristics quite well.
“We’re always looking for opportunities to both fuel greater innovation at our company and capitalize on market trends – and our investment in bitcoin allows us to do both”.
He adds that they have come to believe that cryptocurrencies and the blockchain ecosystem have the potential to significantly grow and transform the insurance finance industry in the years to come. This led them to decide to launch their own cryptocurrency-created investment solution for Registered Investment Advisors (RIAs) and their clients, called Flourish Crypto.
At one point he writes:
“We have come to view bitcoin as a potential store of value over the long-term”.
This assumption is based on the consideration that bitcoin‘s unique characteristics, including digital scarcity, known growth in supply, mode of exchange and hard cap on the total number of tokens, open up new possibilities. This could allow it to act as “digital gold”, to the point where there is the possibility that it could appreciate significantly over time.
Bitcoin and cryptocurrencies part of the financial landscape
According to Corbett, volatility will decrease over time, although it will take several market cycles before this asset can be judged to be too new.
He also says he is excited about many applications of blockchain, which has the potential to transform the way companies like MassMutual record, store and manage data.
He concludes by saying:
“We believe that cryptocurrency and blockchain technology are increasingly becoming part of the financial landscape and look forward to continuing our journey at the forefront of institutional adoption”.
If a major US financial firm, with a century and a half of market presence behind it, is making similar assumptions, then the time has come for Bitcoin to enter the world of big finance head-on and play a leading role in the future.
If Corbett’s hypothesis of bitcoin as a long-term store of value turns out to be correct, we can expect a massive rush by institutional investors to acquire at least some of it, not least because so far very few have done so.