According to Bessemer Ventures, an investor in platforms such as Pinterest, LinkedIn and Twitch, Bitcoin is now at a crossroads in corporate demand.
In recent months, Bitcoin has become an investment tool on the radar of corporate companies. While the purchases made by Square and MicroStrategy made a big splash in the world, even in a turbulent period when the coronavirus cases were re-discussed, BitMEX officials were arrested and resigned, the BTC price did not decrease. However, these purchases did not cause the biggest cryptocurrency to rise significantly.
While Bitcoin has surged by 60 percent since January, purchases of MicroStrategy and Square have not fueled an upward break in price.
“Bitcoin will be a global asset class”
Bessemer Ventures, the startup company investing in platforms such as cloud communication tool Twilo, visual board Pinterest, corporate communication network LinkedIn and live streaming site Twitch, stated that it strongly believes that Bitcoin will be a globally accepted asset class in the light of all these developments. He stated that the corporate demand for Turkey has reached a turning point:
“We believe that Bitcoin will become a globally accepted asset class given its asymmetric risk profile, scarcity characteristics and ability to serve as a digital store of value. With the rapid expansion of central bank balance sheets around the world, Bitcoin is poised to serve as digital gold and provide protection against inflation, which is expected to increase further in the future.
Bessemer took part this week in a $ 50 million fundraising tour for the New York Digital Investment Group (NYDIG), a subsidiary of New York-based asset management firm Stone Ridge. Founded in 2017 to bring regulatory services to the corporate world, NYDIG is now the custodian of Stone Ridge’s 10,000 Bitcoins worth $ 115 million.
“Institutional demand is at the crossroads …”
Stating that digital asset management company Grayscale breaks Bitcoin purchase records almost every quarter, Bessemer explained that due to the custody services developed by NYDIG for digital assets, he expects the institutional demand for BTC to increase and accelerate:
“Institutional demand for this rising asset class is now at a turning point. Some technical problems and regulatory difficulties experienced so far have put some obstacles in front of institutions to invest. However, most of these problems have now been overcome. ”
Bessmer also noted that the options market is currently relatively small but expects growth here as well:
“The options market occupies approximately 1 percent in the average daily transaction volume of Bitcoin. This figure is between 20 and 25 percent in markets such as commodities, oil and gold… As a result, Bitcoin is still like a baby in this sense. Derivatives have now become a marketplace that offers exciting opportunities in the crypto universe and is growing rapidly.