Some prominent Wall Street figures have positioned themselves in favor of having Bitcoin as a form of protection and portfolio diversification, and the reasons are not so different.
The common reason among them is that bitcoin can behave as a hedge in a scenario of high inflation due to an accelerated increase in the monetary base and the indebtedness of governments, which already came with unprecedented spending and which in 2020 was aggravated by the coronavirus . However, it is inevitable that we begin to question the true value of fiat currencies
This made these big investors, who generally use macro strategies, to understand the intrinsic characteristics of Bitcoin, leading them to experience a small exposure of their portfolios in what they begin to judge as a real alternative of reserving value and even in a possible genuine sound money.
The following is the opinion of some of these experienced investors:
BILL MILLER - CO-FOUNDER OF MILLER VALUE PARTNERS
"The supply of Bitcoin is growing at about 2.5% per year and the demand is growing faster than that and there will be a fixed number of them."
"I think every big bank, every big investment bank, every big high net worth company is going to eventually have some exposure to Bitcoin or something, which is gold or some kind of commodity."
“It has been very volatile, but I think that its staying power is getting better every day. I think the risks of Bitcoin reaching zero are much, much lower than ever. ”
STANLEY DRUCKENMILLER - FOUNDER OF DUQUESNE CAPITAL
"Frankly, if the gold bet works, the Bitcoin bet will probably work better because it is thinner, more illiquid and has a lot more beta."
"Bitcoin can be an asset class that has a lot of attraction as a store of value for both Generation Y and new West Coast money and, as you know, they have a lot of that." Note: In 2018 he said he didn't want to own Bitcoin. "
PAUL TUDOR JONES - TUDOR INVESTMENT CORPORATION
"I assume that the market price of Bitcoin is wrong given the possibilities it has."
"Bitcoin has a huge contingent of very, very smart and sophisticated people who believe in it."
"It's like investing with Steve Jobs and Apple or investing in Google from the start."
“I like bitcoin even more than before. I think we are experiencing Bitcoin's first big chance and there is a long way to go. ”
"Bitcoin would be the best strategy for maximizing profits in the face of a scenario of high monetary inflation."
MICHAEL SAYLOR - MICROSTRATEGY CO-FOUNDER
“This is not speculation or hedging. It is a deliberate corporate strategy to adopt the Bitcoin standard. ”
"Bitcoin is digital gold - getting stronger, smarter, faster and stronger due to the relentless progression of technology."
"Bitcoin, if it is not a hundred times better than gold, is a million times better than gold, and there is nothing that comes close to that."
“All of my best investments were in networks that everyone needed, nobody could stop and few understood. Bitcoin is the monetary network. ”
Given these statements what could happen to the price of bitcoin as soon as a bitcoin ETF appears on Wall Street?
Does it go to imaginable levels?
It remains for us to keep our satoshis and wait to see what happens.