Hello!
Yesterday I found a tweet by Kevin Rooke that blow my mind. According to him Grayscale, a trusted authority on digital currency investing is buying more Bitcoins that the ones that are being produced since the last Bitcoin Halving.
Remember, there are just 900 Bitcoins generated each day and the current inflation sits around 1.80% anually. Just 1 firm is buying more than the ones that are being generated, what do you think will happen with the price if this keeps happening?
By the way, find the graph that Kevin posted:
What is Grayscale doing?
In their own words Grayscale is defined as:
The world’s largest digital currency asset manager, with more than $3.3B in assets under management, as of April 30, 2020. Grayscale provides secure access to the digital currency asset class for accredited investors through its single-asset and diversified investment products.
Single-Asset Products
These are the products that Grayscale is selling, the minimum amount to invest in this products ranges from 25,000$ to 50,000$. It basically targets larges sums of money.
- Grayscale Bitcoin Trust
- Grayscale Bitcoin Cash Trust
- Grayscale Ethereum Trust
- Grayscale Ethereum Classic Trust
- Grayscale Horizen Trust
- Grayscale Litecoin Trust
- Grayscale Stellar Lumens Trust
- Grayscale XRP Trust
- Grayscale Zcash Trust
Diversified Products
The minimum investment required to buy this Fund is 50,000$.
- Grayscale Digital Large Cap Fund
What will happen to the price of Bitcoin?
Well, if this trend is true and can continue over time the price of Bitcoin will be pushed upwards as the demand rises (if the seller pressure remains constant). However, there are a lot of things to consider before taking this conclusion.
From one part, the price of Bitcoin is really influenced by large whale movements that can can start a waterfall if they decide to sell a large quantity of BTC. The same can happen in the other direction too.
We've seen really huge changes in price that happened literally in seconds as a large operation triggers some liquitadions in leveraged orders.
I think that in the long run is really positive to see accredited investors buying and holding our favorite asset. The more big investors come, the more buying pressure is added to the market.
Enjoy! 😊
