Bitcoin’s rise in 2020 has been remarkable and driven majorly by institutional investors in the leading currency. Financial TV company Real Vision is the latest to reveal that it has a significant amount of stake in Bitcoin.
Real Vision Investment Yielded 60% In Three Months
Real Vision Ceo Raoul Pal revealed to decrypt, that his company invested 10% of its cash reserves in Bitcoin three months ago. The investment was made via crypto lending services BlockFi.
Pal revealed that Real Vision had done their analysis and it was a relatively risk-free investment. “It’s only 10%. What’s the worst that could happen? It goes down 50% and we lose 5% of our treasury. Well, we’re a subscription-based business; we generate cash, so should be fine. But if it goes up 10X, it makes a decent difference,” He said.
Since the investment was made, the price of Bitcoin has gone up from $12,000 to $19,000 within this period. This represents an increase of 60% during this period which is quite significant. When you place into account that BlockFi offers up to 6% interest on investments, this was a smart move by Real Vision.
Why Institutions Are Not Investing In Bitcoin
Pal further revealed that institutions are not investing in Bitcoin because the corporate treasurer needs to justify placing the firms’ assets into cryptocurrency.
Since cryptocurrencies are volatile assets, he would need to convince shareholders that it is the right move for the company. However, it appears that more institutions are beginning to view crypto assets as a hedge against inflation and the dollar.
The past few months have seen major investments in crypto assets from Investment institutions like MicroStrategy and Grayscale Investments. This has largely been driven by the recent bullish run by Bitcoin which is up 176$ from its price at the beginning of the year despite the COVID-19 pandemic that affected global economies.
Pal believes that the price of Bitcoin could hit between $150,000 and $300,000 in the coming year. So, where does it get to this year? I don’t know, somewhere between $150,000 and $300,000. It’s impossible to know but it’s a lot further than here.” Although this is an outlandish prediction from the Bitcoin investor, it shows the confidence he has in the leading cryptocurrency.
Like BTCMANAGER? Send us a tip!
Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4
