Galaxy Digital Capital Management, a digital asset investment leader, said that Bitcoin is becoming more and more popular in the market. Compared to gold, Bitcoin is considered to have more potential to grow.

In the past, gold has always been seen as a safe, reliable, and time-tested form of investor favor against financial instability. Lately, however, massive investments in Bitcoin like macro investment legend Paul Tudor Jones and tech giant MicroStrategy have made Bitcoin more attractive and seen as a potential hedge against inflation.

Galaxy Digital says Bitcoin still has enormous space to expand with a market cap of over $200 billion.

 “Gold’s market capitalization is currently over $12 trillion. Bitcoin’s value, on the other hand, is currently around $200 billion, less than 2% of the gold market. That presents a potential greater than 60x market expansion opportunity if Bitcoin grows to gold’s level as an alternative, digital store of value asset.”

Bitcoin has shifted from a new, decentralized peer-to-peer digital exchange facility to an internationally recognized institutional asset that is immune to political censorship or intervention, due to its open-source ethos and the 11-year history of negative correlation to significant global assets.

Galaxy Digital revealed that thanks to rising government debt and financial stimulus reaching record highs, the adoption and use of Bitcoin by institutions has increased since the Covid-19 pandemic.

“Top investors and large institutions are adopting it as an inflation hedge, including macro legend Paul Tudor Jones and MicroStrategy Inc., a publicly-traded business intelligence software firm (NASDAQ: MSTR).” 

MicroStrategy funneled $250 million of its money into Bitcoin back in August. It added $175 million to its investment earlier this month, notes Galaxy Digital.

Although at the moment, Bitcoin is in full swing, it is impossible to confirm or predict what the digital economy will look like in the future.

“It is tough to predict what the digital world of the future may look like, and no one can say with absolute certainty which investments or assets will emerge victorious. Bitcoin has a large head start as the leading global store of value alternative to gold.”


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