During the first wave of the pandemic, the cryptocurrency market dropped following the fiat markets.
It is believed that the second wave will also cause a drop, but not so big. However, some experts say that, on the contrary, bitcoin will not drop and will continue to rise, because now it is definitely recognized as a safe haven. The cryptocurrency also had unexpected supporters who did not recognize it for several years.
Jim Cramer, the host of CNBC’s MadMoney program, has been calling Bitcoin an outlaw currency for several years and has stated that “tide has turned against BTC”. But now his rhetoric has changed dramatically. In a podcast with well-known bitcoin optimist Anthony Pompliano, Kramer admitted that he believes in BTC and even bets on it. Jim is now skeptical about traditional defensive assets like gold, real estate, art. He admits that gold is still a defensive asset, but cryptocurrencies have been added to it.
The expert changed his opinion in connection with the monetary policy of the US government, which provides for trillions of dollars worth of fiscal stimulus to combat the effects of COVID-19. The expert is confident that future generations will have to pay for these steps taken by the government. Although he admits that they were made to avoid a repeat of the Great Depression. But nobody wants to raise taxes and cut social programs, so the devaluation of fiat money is inevitable. And that’s why he adds cryptocurrencies to his investment portfolio. Gold and real estate help you store value. But bitcoin additionally allows you to get passive income due to the rise of its price. So far, Jim Cramer gives only 1% of his investment portfolio to Bitcoin. But the start has been made.
There is still a growing focus on the first cryptocurrency from hedge funds. But other institutional investors are joining them, such as MicroStrategy, a company famous in the business intelligence world. Michael Saylor, CEO of MicroStrategy, said that the company acquired BTC for $ 175 million. Together with the previously purchased bitcoins, MicroStrategy now has 38,250 BTC (about $ 415 million) at its disposal. According to the top manager, his firm considers BTC as the main strategic reserve among its reserves. This is not speculation, but a thoughtful savings program. Fiat currencies are becoming too inconvenient, expensive, and unreliable to store value.