Bitcoin, a digital, open, alternative, global, decentralized, transparent and incorruptible financial system, has proven to be a better store of value than gold.
While governments lose trust, Bitcoin and cryptocurrencies gain adoption worldwide. The cryptocurrency industry now has over 200 million users worldwide; a figure that grows every day with the arrival of new followers and the incorporation of new companies and institutions.
Recently, the South Korea Teachers' Credit Union (KTCU) reported about your intention to invest in Bitcoin. The mutual, which manages more than 47.000 billion dollars, is placing its trust and the future of its clients and investors in the cryptocurrency largest in the world. The Korea Teachers' Cooperative noted that a portion of its funds under management will be invested in bitcoin through an ETF (exchange-traded fund) of this cryptocurrency by the first half of 2022.
KTCU, which offers financial services such as long-term savings, insurance, loans and much more, is interested in gaining exposure to Bitcoin for its long-term appreciation potential. SkyBridge Capital CEO and hedge fund manager Anthony Scaramucci recently said that Bitcoin has proven to be a good investment and hedge of future value. Scaramucci stated that his Bitcoin holdings, valued at about $270 million last year, are currently trading above $1.000 billion; a revaluation of more than 300% in the last 12 months.
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Bitcoin, global store of value
Bitcoin's potential as an investment asset and store of value appears to be giving Tesla, the electric car company owned by Elon Musk, pause. In one presentation Recently before the United States Securities and Exchange Commission (SEC), Tesla hinted that it may be about to resume payments in Bitcoin. Musk, one of the richest men in the world, stated that inflationary pressure in global markets and the devaluation of fiat currencies is not temporary and that cryptocurrencies like BTC can help alleviate this pressure and protect long-term value . Musk maintains personal investments in Bitcoin and other cryptocurrencies, such as Dogecoin y Ethereum.
The CEOs of Twitter and Square, MicroStrategy and Ark Invest, Jack Dorsey, Michael Saylor and Cathie Wood, agree with Musk, supporting Bitcoin as a practical solution to protect against inflation and preserve value. In fact, MicroStrategy is the largest institutional investor in Bitcoin today, with more than 114.000 BTC in his possession, valued at more than $7.000 billion at the time of this edition. Saylor has said that MicroStrategy will continue to maintain its strategy of investing all of its excess cash in bitcoins, so that the cryptocurrency has become its main reserve asset.
Likewise, the CEO of MicroStrategy stated that the recent intention of the United States Securities and Exchange Commission (SEC) and other regulators to control the stablecoins, will drive the adoption of Bitcoin as a global reserve asset.
“Regulatory clarity for stablecoins will accelerate the adoption of Bitcoin as the global reserve digital asset (store of value) and USD as the global reserve digital currency (medium of exchange).”
Bitcoin, cryptocurrencies and Fiat
US Senator Rand Paul also spoke out in favor of Bitcoin a few days ago. Paul stated that Bitcoin can become the world's main reserve currency, thanks to its growth potential and the loss of trust in governments.
During a interview all with Axios, Paul talked about the unreliability of fiat currencies, which are not backed by anything beyond the fiat and promise of value from mostly opaque governments. Paul emphasized his support for Bitcoin and noted that the cryptocurrency can act as an alternative and efficient global reserve currency.
What drives crypto adoption?
The use of cryptoassets skyrocketed in the last year, as a result of the expansion of the Covid pandemic. The paralysis of the entire world made society adopt crypto assets even more, and not only to send and receive value, but as a store of value. As Chainalysis noted in its report Geography of Cryptocurrency This year, cryptocurrencies grew more than 880% in adoption since 2020; a reality that propelled its value to new heights.
To date, the entire cryptocurrency market reaches a capitalization of 2,73 trillions of dollars; This is 800% more than the value they collected for the month of October last year. Likewise, analysts JPMorgan considering that the current revaluation of Bitcoin and cryptocurrencies, in addition to being driven by global adoption, is also a product of current inflation levels.
“Bitcoin is being seen as a better hedge against inflation than gold”, point out the strategists of the prestigious American bank; while emphasizing that rising inflation concerns will see significant new capital flowing into Bitcoin, further revaluing its price.
A new digital alternative
Scaramucci believes that anyone who is encouraged to study and learn about Bitcoin and its underlying technology, and understands its value as a cryptocurrency and as an alternative financial system, will end up investing in BTC. An example that the fund manager cited is the arrival of Ray Dalio to the cryptocurrency ecosystem. “Look at Ray Dalio, a Bitcoin skeptic, now a Bitcoin investor”, Dijo.
Although cryptocurrencies, which were born with Bitcoin in 2009, were initially designed as a means to transfer value in a global and decentralized way, they are now present in different fields of society. Its current application and uses as investment and reserve assets is much greater, in the case of Bitcoin, than as a means of exchange and transfer of value.
Thus, from retail investors to large corporations, cities and entire countries are beginning to join more frequently within this digital ecosystem. Every day new ones arrive news of new actors or powerful companies that think about maintaining or are already investing part of their holdings in a cryptocurrency. For Bitcoin and crypto asset advocates, there is no more practical solution to protect against long-term inflation than BTC and digital assets.
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