Bitcoin’s potential as a long-term investment and hedge against risk is paying off for some investors this year. Bill Barhydt, CEO of peer-to-peer payments platform Abra, has become the latest individual investor to tap into the asset and wait out the economic storm.
Cash Keeps Losing Value
Last weekend, Barhydt confirmed in a tweet that he had increased his portfolio’s Bitcoin component significantly, with the top cryptocurrency now accounting for half of his entire investment haul.
A few weeks ago, I increased my ownership of #Bitcoin significantly and it’s now 50% of my investment portfolio. Why?
Watch this video to find out why (and read on…) (1)https://t.co/YSj6dAXjDT
— Bill Barhydt (@billbarhydt) October 23, 2020
The Abra CEO is one of Bitcoin’s most prominent bulls. He has thrown his weight behind the cryptocurrency, explaining that it is a store of value comparable to gold and other top alternative assets. Speaking in a live stream on the same day, he reiterated his positive outlook for the asset, explaining that it is the “single best investment opportunity in the world.”
As he explained, Bitcoin benefits from being a scarce asset. He added that Bitcoin’s available units left to be mined are constantly dwindling, adding that the asset should see its value relative to fiat skyrocket continuously.
“Cash, or government-printed money also called fiat, is actually becoming worthless, while Bitcoin’s value remains constant. There will never be less fiat printed than is now. Cash is only going to get more and more worthless.”
Barhydt spoke on Central Bank Digital Currencies (CBDCs) during the live stream as well, explaining that Central Bank’s new focus on the asset wouldn’t stop them from printing paper money. While he explained that these agencies had been irresponsible with printing money in the past, he believes they will continue with the act.
Good Times for Bitcoin Investors
Barhydt is joining a long list of investors who are enjoying the decision to move to Bitcoin this year. Several top companies have done so in recent months, with the most prominent being cloud-based business intelligence solutions provider MicroStrategy and (which invested about $425 million in the asset), payment processor Square (which purchased $50 million worth of Bitcoin last month).
Data from blockchain research firm Coin98 Analytics shows that institutional investors have so far put in $6 billion into Bitcoin. Many of them have seen that the asset has long-term potential and are buying into it.
So far, the decision seems to have paid off. Bitcoin is currently at a yearly high, with the asset climbing firmly above the $13,000 spot thanks in part to integration from top payment processor PayPal. As Inside Bitcoins reported, PayPal will allow its customers to access cryptocurrencies and shop at any merchant that uses its services from next year. The payment processor plans to settle all payments in fiat, with customers paying in crypto and its systems handling the conversion process.
This growth looks set to continue, with Bitcoin holding firmly above the $13,000 comfort level and looking to finish the year on a high. For these investors, this performance works out to some impressive gains. It could also incentivize them to keep their money in the asset and spur more investors going forward.