Grayscale: Bitcoin has great chances of making a Profit but it is not digital Gold
Bitcoin started with a large price increase in the new year. Discussions on whether Bitcoin is digital Gold is again on the agenda. Grayscale CEO Sonnenshein has a clear and unique opinion.
For many traditional investors, the technological complexity of crypto currencies is still uncharted territory. A week ago, the CEO of Euro Pacific Capital, Peter Schiff made headlines within the crypto-Community, as he pushed on Twitter the blame on Bitcoin when he could no longer have access to his Bitcoins, because he had lost his private key and his password.
For many investors, Bitcoin and the underlying technology are still hard to come by. Companies such as Grayscale Investments to bridge this gap and act as an investment banker, you will manage the digital assets of the investors value. In the year 2019, it was reported that Grayscale Investments, has registered over $ 600 million in crypto investment. In the latest episode of the podcast Rational Reminder Michael Sonnenshein, managing Director of Grayscale Investments, spoke in detail about how digital currencies today represent an asset class and the Use of Grayscale for investors.
In his lecture about why investors prefer to use financial instruments to engage in the digital asset class, said Sonnenshein, that investors, when it comes to Bitcoin, you need to check and investigate from whom you can buy Bitcoin and how credible such a counterparty is worthy of. Even if Bitcoin can be individually purchased, the required technical Knowledge, for many, a major hurdle.
You also need to have the technological Know-how, to be able to Bitcoin in a Wallet move, to keep your password safe and long-term storage. And for most investors this is a new and unfamiliar experience.
He also highlighted how the Grayscale products address these challenges and allow investors,
on a way to come up with digital assets in touch, which feels super traditional or, rather, their experiences with investments in other financial instruments.
As the conversation came to speak on Bitcoin in comparison to Gold and continued to the end of the discussion, if BTC is digital Gold of sunshine has a clear opinion. He describes that the distinction can be made between the main differences between Bitcoin and Gold in relation to the greater divisibility, portability, and the many Benefits of Bitcoin:
Bitcoin is for amazing applications, of which we have scraped most hardly on the surface, while Gold is really become a asset that is mostly held by Central banks and governments and only a very limited Use.
In crisis-ridden countries such as Venezuela and Argentina, or Hong Kong, the Bitcoin trade volume is rising because the population wants to save due to the rising Inflation, your existing capital and, therefore, in BTC flees. Often in these countries there are no way to buy Gold, silver or other precious metals, and to escape the Inflation. With a simple Internet connection and a little technical understanding, citizens can buy Bitcoin. The country has its own crypto-currency Petro in Venezuela is a failure today, since the only Exchange of the Petro and handled could be purchased, has been closed since the beginning of this year.
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