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Who is buying Bitcoin?

4 min. reading
Bitcoin / 10 April, 2021

Edgar Mondragón Tenorio Journalist

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The Debate

Almost since Bitcoin came out, it has been at the center of the debates, with positions for and against it on issues such as whether it is money or not, if it is a store of value or not, what it is backed by, if it is better than fiat money or if it is just a speculative instrument that will generate a big bubble that will burst in a negative way for all those who believe in it.

The truth is that over the years it has gained great popularity among ordinary people, as well as among great personalities from all fields, and even renowned entrepreneurs and managers of large companies are beginning to take risks and turn to see bitcoin as a contribution of real value, both personally and for their companies, but who are they and why are they doing it?

Cryptocurrencies: benefits and risks of virtual currencies

Cryptocurrencies: benefits and risks of virtual currencies

2017 has been the year of cryptocurrencies: More than 300 new virtual currencies have been created. Bringing their total to over 900. In other words, the number of virtual currencies in the world more than triples the number of conventional, state-issued currencies, which according to the UN currently stand at 180.

The reasons

In 2008, Satoshi Nakamoto explained, through the Bitcoin White Paper, that what we know as fiat money, which is guaranteed and regulated by both governments and the International Financial System, is not reliable and that this fiat money is responsible for the financial and economic crises of the last century.

To counteract this fiat money effect, Bitcoin promises to have a limited supply which will supposedly prevent inflation. As it is not regulated by any financial institution or government, transactions will be fast and transparent, person to person, as well as efficient. And since all this information is contained in Blockchain, it will be impossible to violate or modify it.

This point of limited supply, according to its adherents, also makes Bitcoin a better store of value than gold, since, for the same security reasons, it is impossible to steal or duplicate and its price will increase. 

Who trusts Bitcoin?

Among the people who have recently uncovered their interest in Bitcoin is Elon Musk, who, through his company Tesla, acquired 1.5 billion dollars in Bitcoin, according to him, to maximize the use of cash that is not used in his company.

Although shortly thereafter he announced the withdrawal of this investment due to climate change issues. Anyway, he himself published that he remains in the crypto assets game.

In the same vein the Latin American company, “Mercado Libre” announced that it had invested 7.5 million dollars in Bitcoin, as part of its treasury strategy reported in its quarterly report to the U.S. financial authorities. Moreover, it will be part of its strategy indefinitely.

Of course, Wall Street is also very attentive to the evolution of Bitcoin, so much so that institutions such as JP Morgan and Morgan Stanley have announced their interest in this cryptocurrency, as well as possible investments.

In the same vein, Bank of New York Mellon, as well as the investment fund manager, Blackrock, have given the go-ahead to follow and open to investment in Bitcoin.

Other companies listed on the New York Stock Exchange, such as MicroStrategy, Square, Galaxy Digital, each announced investments ranging from 50 million to 500 million in Bitcoin. All of them alluded that the strategy is to preserve the value of their assets and protect their investors.

In addition to companies that are investing in Bitcoin, more and more companies are also accepting payments with this cryptocurrency. In this list we can find companies such as Visa, Mastercard, PayPal and more recently, eBay. Also, Microsoft, since some time ago. accepts payments with Bitcoin in its video game store.

The characters

Of course, people from all walks of life have also jumped on this Bitcoin fever. From actors like Ashton Kutcher, Gwyneth Paltrow, singers like Katy Perry, Snoop Dogg, and Madonna herself have made public their support for Bitcoin as well as investments in this and other cryptocurrencies.

Even in the field of sports, in addition to the fact that blockchain technology is already being used in this field, athletes such as Mike Tyson, Serena Williams and Lionel Messi have also expressed their support for the crypto economy.

It seems that, regardless of the field, as well as the high volatility that cryptocurrencies still present, every day more and more people dare to invest in these assets, depositing in them not only their trust and the hope of obtaining surplus value but also, in many cases, their patrimony.

 

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