With the news breaking today of Tesla’s $1.5bn investment allocation in Bitcoin, several crypto experts have weighed in on what the news
With the news breaking today of Tesla’s $1.5bn investment allocation in Bitcoin, several crypto experts have weighed in on what the news will mean for the crypto ecosystem and financial industry moving forward. The consensus is that corporate treasuries and institutional investors will follow suit and pile into Bitcoin, opening up new opportunities and trends for the crypto market and investors. Q4 2020 hedge fund letters, conferences and more A diverse range of experts provide a commentary on today’s revelation for the crypto and financial industry. Eric Kapfhammer, COO and Head of Polyient Capital, said: Tesla’s bitcoin disclosure could end up being looked back upon as the event that ensured cryptocurrencies crossed the chasm into the mainstream. Not only will the impact of this be felt across the corporate world, but due to Tesla’s high profile, it could end up being a trigger for popular retail adoption. The period of time between 2017 to present has seen a tremendous amount of progress on the development of the infrastructure layer that serves to enable cryptocurrencies to plug-in to the « real » economy. That infrastructure – technical, legal, financial, and regulatory – has set the stage for the recognition of cryptocurrencies as viable reserve assets within corporate treasury holdings. While each company will weigh the risks and rewards of introducing these assets into their portfolio differently, the fact that Tesla has jumped aboard the bitcoin train provides a high-profile comparable to at least facilitating that conversation. Luis Cuende, Co-founder of Aragon, said: Tesla’s move into Bitcoin is incredibly bullish for cryptocurrencies, and officially confirms crypto as a reserve asset for corporate treasures. Today’s news confirms the world’s wealthiest entrepreneur and his company going full-on crypto. With asset managers like Ray Dalio and entrepreneurs like Michael Saylor and Elon being bullish on BTC, more and more corporations will recognize it as a reserve currency for treasuries. Next, national treasuries will follow. The infrastructure for corporations to invest in crypto has been in place for years, so now it’s just a matter of time before corporations consolidate around BTC. Philippe Bekhazi, CEO of Stablehouse, said: Tesla’s decision is another validation of Bitcoin as a potential Corporate Treasury asset. ‘Gold 2.0’ in a world of poor monetary policy management. This further reduces the ‘job risk’ for CFOs who had considered this previously. It could even make it mandatory for them to consider it now. In many ways, this is a very bullish aspect of the Bitcoin as money story and Bitcoin as gold story and a hedge against sovereign state money inflation.
