Asset manager and Co-Founder of investing firm 10T Holdings, Dan Tepiero, believes that MicroStrategy Inc.’s $425 million USD investment in Bitcoin , which amounts to 38,250 bitcoins could be
USD by 2030. A price appreciation of that magnitude would represent a whopping 23.5x return on investment.
Bitcoin is currently trading at around $17,300 Canadian per coin. In order for MicroStrategy Inc.’s investment to reach $10 billion USD (or roughly $13.1 billion Canadian), the price of one Bitcoin would have to reach over $407,000 Canadian at today’s USD to CAD exchange rate. At that price, the total market capitalization of Bitcoin would be more than $8.5 trillion Canadian, which is still lower than the market capitalization of gold.
Two Key Reasons Institutions Are Investing in Bitcoin
Although the individual consumer rarely thinks about inflation or the loss of purchasing power on a regular basis, publicly traded companies with large capital investments have to think about it and hedge against it on a regular basis. Many believe that Bitcoin will soon see a day where it no longer correlates directly with the stock market, which is certainly a valid reason to use Bitcoin as a hedge. Inflation is an even bigger reason to do so.
There will only ever be 21 million bitcoins in existence. We’re living in a time where governments are printing off more and more money to try to keep economies above water and nobody can ever print or duplicate more bitcoins. That’s why the idea that the supply of a given currency is controlled by an algorithm rather than a central authority is becoming much more enticing to investors.
The other key reason institutions are investing in Bitcoin is simply because it still has room to grow exponentially. Infamous hedge fund investor Paul Tudor Jones recently went
, saying that investing in Bitcoin now is the equivalent of getting in early on stocks like Apple or Google, two of the world’s technology giants. With that kind of upside, there is no reason for institutional investors not to be interested at this point.
How to Invest in Bitcoin Just like MicroStrategy
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Written by: Jack Choros
Writer, content marketing at Netcoins.
The information provided in the blog posts on this platform is for educational purposes only. It is not intended to be financial advice or a recommendation to buy, sell, or hold any cryptocurrency. Always do your own research and consult with a professional financial advisor before making any investment decisions. Cryptocurrency investments carry a high degree of risk, including the risk of total loss. The blog posts on this platform are not investment advice and do not guarantee any returns. Any action you take based on the information on our platform is strictly at your own risk. The content of our blog posts reflects the authors’ opinions based on their personal experiences and research. However, the rapidly changing and volatile nature of the cryptocurrency market means that the information and opinions presented may quickly become outdated or irrelevant. Always verify the current state of the market before making any decisions.
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