Galaxy Digital Capital Management, a leader in digital asset investing, says Bitcoin’s mainstream market presence is on the rise, with more growth potential than gold.
Although the precious metal has historically been investors’ favorite time-tested and reliable safety net against financial uncertainty, Galaxy Digital says in a new report that recent investments in Bitcoin from macro investing legend Paul Tudor Jones and tech giant MicroStrategy highlight Bitcoin’s attractiveness as a potential hedge against inflation.
With a market cap of over $200 billion, Galaxy Digital says Bitcoin still has tremendous room to grow.
“Gold’s market capitalization is currently over $12 trillion. Bitcoin’s value, on the other hand, is currently around $200 billion, less than 2% of the gold market. That presents a potential greater than 60x market expansion opportunity if Bitcoin grows to gold’s level as an alternative, digital store of value asset.”
Due to its open-source ethos and 11-year history of negative correlation to major global assets, Bitcoin has transformed from an obscure, decentralized peer-to-peer digital transaction facility to a globally-recognized institutional asset that is resistant to political censorship or interference.
Institutional adoption and usage of Bitcoin has surged since the Covid-19 pandemic, thanks to swelling government debt and fiscal stimulus hitting record highs, says Galaxy Digital.
“Top investors and large institutions are adopting it as an inflation hedge, including macro legend Paul Tudor Jones and MicroStrategy Inc., a publicly-traded business intelligence software firm (NASDAQ: MSTR).”
Back in August, MicroStrategy funneled $250 million of its capital into Bitcoin. Earlier this month, it added $175 million to their investment, notes Galaxy Digital.
As to where the future of digital economy is headed, Galaxy Digital says it’s hard to say for certain.
“It is tough to predict what the digital world of the future may look like, and no one can say with absolute certainty which investments or assets will emerge victorious. Bitcoin has a large head start as the leading global store of value alternative to gold.”
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