According to Spencer Bogart, a partner at Blockchain Capital, this is the best time to purchase Bitcoin (BTC). In order to back his opinion, he gave four reasons that Bitcoin investors should look at before purchasing the most popular digital asset. He said this during a conversation with Bloomberg a few days ago.
The first thing he said is that there is a growing interest from pension funds and institutional investors in Bitcoin. About it, Anthony Pompliano, a partner at Morgan Creek Digital, wrote an article in which he explains why pension funds should purchase Bitcoin.
Pompliano explained that Bitcoin has an asymmetric risk profile. Investors could lose part of their investment but they could earn ten or a hundred times more the sum invested. Moreover, Fairfax County and Virginia have allocated part of their pension fund to Morgan Creek’s blockchain opportunities fund.
The second topic mentioned is related to global tensions and rising national debt. During the last few months, there have been several trading tensions between China and the United States. Moreover, Europe seems to be entering a recession since Germany, France, Italy and the United Kingdom have registered lower growth rates than previously expected.
In the United States, the national debt is also growing to new highs. Just a few days ago, it reached $22 trillion and it continues to grow. Bogart warned about political tensions between globalism and populism as well.
Bitcoin could be used if there is an economic crisis such as the one experienced in 2009. The same would happen if there is a currency crisis in which a country cannot control inflation rates. This is the case of Venezuela, where individuals are embracing virtual currencies.
Thirdly, entrepreneurial activity in the crypto space is also growing according to Bogart. As he mentioned, there are more and more companies coming in every single day. Furthermore, there are also higher quality entrepreneurs entering the market.
Clearly, Bitcoin fundamentals are expanding. The number of transactions is reaching the same levels as during the bull market experienced by virtual currencies in 2017. Moreover, Segregated Witness (SegWit) adoption is also growing as time passes. The Lightning Network (LN) is expanding as well and its capacity surpasses 700 BTC.
Finally, Bogart says that Bitcoin is growing stronger over time. For him, every single day that Bitcoin is alive it moves from scary and unknown to trusted and proven. In the past, Bitcoin has also experienced similar crashes and it has also survived. Every single time Bitcoin reached a bottom, it hit an all-time high a few months later.
Now, Bitcoin is being traded around $3,950 and it has a market capitalization of $69.41 billion. Bogart believes that Bitcoin will eventually reach $50,000 in the future.