While 2020 has been an important year for Bitcoin (BTC), 2021 that is just beginning is already full of wonderful surprises. On February 8th, Bitcoin’s price jumped nearly $ 3,000 in minutes, then rose 20% in 24 hours – all due to news that Tesla has allocated Elon Musk $ 1.5 billion from its balance sheet to BTC.
In the same week, the oldest bank in the United States, New York Mellon Bank, announced plans to hold, convert and issue Bitcoin. Mastercard also plans to support cryptocurrencies in 2021 for nearly 1 billion users. SEC Commissioner Hester Peirce, commonly referred to as the “Crypto Mom” in the crypto community, also emphasized the urgent necessity of regulatory clarity due to recent events in space.
With PayPal, Tesla, Mastercard, BNY Mellon and others entering the crypto world, isn’t it more clear than ever that digital assets are now part of the mainstream? That their collective adoption has begun and that it is a matter of the present, not the future?
Last year, Cointelegraph asked experts in the crypto and blockchain industries for their views on PayPal’s crypto integration, crowd-accreditation, and the importance of 2020 in Bitcoin’s history. This time, the question is: What does Tesla’s recent investment of $ 1.5 billion in Bitcoin mean for the crypto space in terms of financial markets, crypto adoption and brand building, and the entire industry at large?
Alex Tapscott, co-founder of Blockchain Research Institute:
“There is no doubt that Tesla’s purchase of Bitcoin has shocked the corner offices of every chief financial officer and corporate treasurer in America and abroad. One of Bitcoin’s many benefits is that it works like digital gold, diversifies corporate holdings and reduces currency risk. Mali has to sharpen his pencils to understand if and when he should buy them.
While Tesla is not the first public company to buy Bitcoin for its vault, it is by far the most important. How poignant it is that Elon Musk, an astronaut, pushed Bitcoin to speed its escape into American companies!
Tesla’s decision comes after a series of high-profile announcements by large corporations, which fit into a pattern of accelerating enterprise adoption. Equally important to the Treasury allocation was Tesla’s decision to accept Bitcoin. This is in the footsteps of many other big innovators like PayPal, Visa, and others that are building a highway for Bitcoin adoption, allowing not only to buy and sell Bitcoin but integrate into their merchant networks. By the end of 2021, I expect that many companies do not only own bitcoin but have a true bitcoin strategy. “
Da Hongfei, Neo’s founder, founder and CEO, Onchain:
“This is a very promising sign of the prevailing interest and its growing desire to embrace the blockchain. Moreover, it confirms that blockchain and Bitcoin are here to stay in the future.
Throughout 2020, more financial institutions are investing in Bitcoin, and I am confident that blockchain adoption is accelerating as the global financial model shifts to fully embrace digitization and decentralization. Moving forward, we must continue to push for effective standards across the industry as well as greater integration to fully deliver blockchain capabilities that are game-changing. ”
John Woo, President of Ava Labs:
“ Tesla’s purchase of $ 1.5 billion in Bitcoin not only continues the momentum of generic companies buying cryptocurrencies but could be a watershed moment that defines some digital asset allocation as the cornerstone of a healthy and diverse treasury.
Regardless of the industry, companies must follow these early adopters to create internal drivetrain routes and the financial infrastructure of the future. That starts with Bitcoin and will steadily expand to include projects that are right outside the framework and focus on the smart, programmable asset side of the ecosystem where organizations can find more use cases other than digital gold.
Joseph Lubben, Founder of ConsenSys and Co-founder of Ethereum:
“The embrace of Bitcoin and Ether by institutional investors and corporate treasury departments in recent months represents a watershed moment for the global economy – early tangible signs of a paradigm shift in how global businesses and financial and economic systems are built. It is researched on the basis of a new subjective, automated confidence in real time, as It is represented by the Ethereum and Bitcoin networks.
Today, corporate finance departments are learning how to manage BTC and ETH tokens to preserve value and reduce transaction friction and leverage, as these systems will grow in size and value exponentially with their adoption over the next few years. Tomorrow, their Treasuries will enter into decentralized financing protocols that are largely built on Ethereum for borrowing, lending, trading, stocks and bond issuance, full life cycle token management, insurance, forecasting markets, trade finance, cryptography and billing factors, loyalty tokens and the art of NFT. Which can be displayed on the walls of board rooms. They will do so because they will be able to create and issue financial instruments without the need for intermediaries, and they will be able to direct financial flows to suit their needs in real time. They will do that because that is where the liquidity is. “
Michael Terpen, Founder and CEO, Transform Group:
“Tesla’s bold move to invest $ 1.5 billion from its vault in Bitcoin, as well as accepting Bitcoin as a payment method for Tesla vehicles in some jurisdictions, opens the doors wide for US companies and high net worth families to seriously consider placing a small coin part of their Bitcoin net worth as a store. For value, rather than bonds, gold, dividend stocks, and commercial real estate, which were below historical standards.
With only 18.6 million Bitcoins in the world – and possibly 4 to 5 million lost or not offered for sale – there is not enough to meet the demand of 46.5 million global millionaires, nor 1% to 5% of an estimated $ 4 trillion in cash on corporate balance sheets in The United States alone. Add 1.8 billion generations of millennials, most of them in countries with idle currencies or banking systems, and one can see that supply and demand for Bitcoin are out of balance.
Over time, that demand will move to Ethereum, which already owns a large portion of the Fortune 500 apps developed on it, as well as DeFi’s innovative cryptocurrency platforms and NFTs – and many billionaires, including Mark Cuban, have recently jumped on those. Trolleys. We are in the next year of the half – what I call “Bitcoin Summer” – and there has been equivalent growth after every four years there has been a halving so far. This year may not be an exception. “
Mike Belchi, CEO of BitGo:
In the face of a pandemic, domestic inflation and global uncertainty, mainstream companies have jumped into digital assets with new enthusiasm. From public corporations like Tesla and Square to funds like Grayscale and Tudor Group, prominent institutions are increasing their exposure to Bitcoin. In total, it is estimated that these institutions hold more than 6% of the 18.6 million bitcoins in circulation, in excess of 1.2 million bitcoins. After Bitcoin crossed an all-time high of more than $ 48,000 in early February, the total value of these institutional acquisitions surpassed $ 55 billion.
In the past six months, BitGo has embedded several corporate accounts through the education process, smart market access, asset accounting, reporting and more – all while keeping assets stored in qualified custody and organized with the highest levels of security for deep cold storage.
Mainstream Bitcoin acceptance is only expected to grow as more institutional investors adopt cryptocurrencies, paving the way for future entrants to follow. This rising market demand from large entities is likely to continue to affect Bitcoin’s value and may moderate its volatility. With the final bitcoin expected to be mined in 2140 and more than $ 2 trillion in monthly turnover, there is still plenty of time to introduce Bitcoin – for businesses and individuals alike. Despite the tremendous acceleration of institutional investors, we are probably only at the top of the iceberg when it comes to mass adoption. The additional companies and funds will soon witness the success of these innovators, and thus will begin to follow their lead. “
Scott Freeman, Co-Founder and Partner, JST Capital:
“The recent announcement by Elon Musk of Tesla’s investment in Bitcoin is another example of expanding the acceptance of Bitcoin and digital assets as an asset class in their own right. We are quickly getting to the point where such announcements will no longer be seen as” news “and will not cause any longer In market reactions.
Take, for example, a recent announcement by BNY Mellon, which we think is more significant but hasn’t caused a hype in the market. Taking a step back, we believe that the success of Bitcoin and digital assets more broadly is a strong harbinger of the power of global retail-based innovation in financial markets. See recent GameStop activity as another example. We believe this trend will continue and will raise important policy and regulatory issues that will need to be addressed by governments and central banks around the world. “
Tim Draper, Founder, Draper Associates and Draper Fisher Jurvetson:
“When I tweeted Elon about accepting Bitcoin three weeks ago, I had no idea that he would be very responsive, first by accepting Bitcoin and then by managing his money by buying some Bitcoin. I expect his action will be widespread,” he said. First, for early adopters that use OpenNode or the Lightning Network to accept Bitcoin, and then the world’s top financial officials realize the need to own some Bitcoin to hedge against upcoming inflation and against the printing of more fiat currencies by politicians. “
These quotes have been edited and condensed.
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