The rapid rise of cryptocurrency has not only attracted retail investors, but also financial greats who are eyeing part of the booming industry. After Bitcoin’s launch in January 2009, the early years of the crypto industry were largely driven by tech enthusiasts and hobby investors. Institutional investors had rejected Bitcoin as a worthless digital asset favored primarily by criminals, hackers and profiteers. But now that the crypto industry’s market cap has passed $ 2 trillion, institutions are struggling to pass up the business opportunity.
The change in approach was driven by a number of factors, including the incredible success of Bitcoin and other crypto coins. Some institutions are diverting their money to cryptocurrency as a strategy to diversify their investments, with billions of dollars of institutional capital flowing into space this year alone.
Take for example MicroStrategy and its founder Michael Saylor, a strong supporter of Bitcoin. The IT services company is already the largest Bitcoin-holding company in the world, even ahead of Elon Musk’s Tesla. He recently bought another 5,050 Bitcoins to consolidate his lead to $ 5.1 billion.
Twitter CEO Jack Dorsey, another Bitcoin maximalist who founded a mobile payments company named Square, has placed his business at the center of decentralized finance (challenge). Square is among the top 5 Bitcoin investors.
The term unicorn, reserved for private startups reaching a value of $ 1 billion, has found new meaning with the growth of cryptocurrency. CoinDCX, an online exchange that facilitates trading of Bitcoin and other crypto coins founded in 2018, recently became India’s first crypto unicorn after a round of funding.
But there are also some who have not found the crypto industry very encouraging. Like Lee Cooperman. The billionaire US investor and hedge fund manager recently said he still doesn’t understand Bitcoin. He said he thinks it is not in the best interests of the US government to continue to replace the dollar.