21 that its institutional asset base from $6 billion in April 2020 to $20 billion as of mid-November. The fact that it also happened in Bitcoin around the same time hints that more institutional interest was in play than in previous crashes.Īnd growing institutional interest is one of several trends that King expects to be a major driver in Bitcoin prices over the years to come.Ĭoinbase, a digital currency exchange that's expected to go public this year, said on Nov. The actual activity on the blockchain was impressive." How Bitcoin Interest is GrowingĪ push to liquidity, such as the one seen in March, is rare, and it usually occurs at the climax of a market selloff. (But) if you look at how it behaved since then, folks see that there's something here. "It correlated with the market and came down with everything else. "If you look at when it was invented until March, it had never experienced a recessionary environment." "What we needed to see was Bitcoin survive a global macro meltdown," says Tyrone Ross, CEO of Onramp Invest, a digital platform allowing financial advisors to provide clients with access to cryptocurrencies. The digital coin was merely cut by the other edge of speculation's blade worries about hacking risks, for instance, hampered cryptocurrencies in 2018. "It came in through individual acceptance, a grassroots type of thing." Bitcoin More Than Survives 2020īitcoin prices crashed after sharp rallies in 20, but these declines weren't precipitated by any major event spanning multiple asset classes. "One of the things that fascinates me with how Bitcoin has come into existence is that it came in upside-down," says Greg King, CEO of Osprey Funds, which operates the Osprey Bitcoin Trust. Indeed, Bitcoin was invented in 2008 and launched in 2009, just as world governments were printing money to respond to the global financial crisis. (Fortunately, it can be divided fractionally down to 1/100,000,000th of a Bitcoin, known as a "Satoshi.") It was designed to be a true store of value that couldn't be manipulated. Transactions are kept on the blockchain, an encrypted and decentralized ledger that protects the integrity of Bitcoin while also ensuring the privacy of the user.Īnd in contrast to fiat currencies, which can be printed on demand, Bitcoin is limited to a total of 21 million possible coins once it is fully mined. Unlike traditional "fiat" currencies created and operated by a government and central bank, Bitcoin is "mined," or created by people who solve mathematical problems with computing power. First, a quick refresher for the uninitiated:īitcoin is one of many digital currencies.
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