Former UKIP politician (the UK Independence Party) Godfrey Bloom took to Twitter to share that he made his first bitcoin purchase this week, diversifying his portfolio from the precious metals.
I make my first purchases of bitcoin this week.
Gold & silver have I plenty. https://t.co/EPObJZ7Rvk
— Godfrey Bloom (@goddersbloom) October 1, 2020
The 70-year old has enough gold and silver that had a blast in 2020 thanks to the Federal Reserve’s monetary stimulus. Now, he is looking to get into the leading digital asset, which has been attracting a lot of big players this year as an “inflation hedge.”
Bitcoin is “likely to be a powerful hedge against US dollar weakness,” noted Charlie Morris of ByteTree.
During Bitcoin’s lifetime, 2017 and post Covid-19 crash 2020 has been the only meaningful occasions when DXY fell, and BTC did well. “The vast majority of Bitcoin’s past gains coincided with periods of a flat or weak dollar,” he found.
This year, bitcoin also grew stronger as a store of value and digital gold, even better than physical gold — cheaper to move around, tamper-proof, and easily verifiable.
“That’s something a lot of smaller investors already understand. Institutional investors are adapting to this as well,” said Eric Demuth, CEO and co-founder of crypto exchange BitPanda, which raised $52 million in a Series A round led by Peter Thiel’s Valar Ventures.
Despite the growing progress, mass utilization of the cryptocurrency is not here, and we’re still not there yet, he said.
According to him, in the next five years, bitcoin and crypto overall will become more mainstream with usability getting better and access to these crypto-assets very easy and straight-forward.
“Bitcoin will be a must-have asset in every investor’s – small or big – portfolio in 2025,” he predicted adding, regulation will boost its credibility.
I have had a very significant response to my bitcoin tweet.
So an update
I am revising bitcoin over the weekend to know enough to understand what I don't know.
It is my goal to share my experience with fellow oldies keen to diversify out of fiat currencies.
— Godfrey Bloom (@goddersbloom) October 2, 2020