Insurance Giant Sees Bitcoin As A “Store Of Value” And A “Potential For Significant Price Appreciation”
MassMutual CIO says it would take multiple market cycles to determine if Bitcoin serves as an inflation hedge. Meanwhile, Billionaire private equity investor Orlando Bravo asks, “How could you not love crypto?”
Billionaire private equity investor Orlando Bravo revealed that he is a Bitcoiner and is “very bullish” on cryptocurrency.
“How could you not love crypto?” said Bravo at this week’s Delivering Alpha conference on CNBC.
Bravo is the founder of Thoma Bravo and has a net worth of $6.3 billion. His firm has invested in the crypto derivatives platform FTX. On Wednesday, he shared that he personally owns Bitcoin.
“Crypto is just a great system. It's frictionless. It's decentralized. And young people want their own financial system. So it is here to stay.”
“For me, it's pretty simple. More people are going to use it in the future than today, and it's going to be more established. Institutions are just beginning to go there, and once that happens, I think it will increase significantly over the years. I'm very bullish.”
According to Bravo, regardless of what protocol or system one is building on, the underlying blockchain technology can be “very powerful” and “provide better use cases than data-based software.”
New And Still Undergoing Price Discovery
Much like Bravo, Chief Investment Officer of MassMutual, an insurance company with $616 billion assets under management, is bullish on the future of cryptocurrencies.
In a LinkedIn post titled “Bitcoin and beyond: evolving for the digital world of tomorrow,” published on Thursday, Tim Corbett talked about Bitcoin has the potential of being a store of value over the long term.
MassMutual first ventured into cryptocurrency last year with an investment in Bitcoin for its General Investment Account (GIA).
“We have come to believe that cryptocurrency and the blockchain ecosystem have the potential for significant growth and transformation across our industry, amongst others, in the years to come,” as such the company found it imperative to invest in crypto itself and lay the groundwork for ways to incorporate it into their business.
Corbett further wrote that they have come to “view bitcoin as a potential store of value over the long-term.”
According to him, Bitcoin may also serve as a “digital gold,” thanks to its unique characteristics including digital scarcity, known supply growth, transfer characteristics, and hard cap, “with the potential for significant price appreciation.”
Overall, he says the “asset class is new and still undergoing price discovery,” with significant uncertainty, risk, and volatility, which is expected to decrease as more institutions join in but added that,
“it will take multiple market cycles before we have robust data to further describe the characteristics of the investment, such as correlations to other asset classes or whether it will serve as an inflation hedge.”
Still, Bitcoin is not untested, and while the regulatory environment is still developing, Corbett says thoughtful and prudent regulation will accelerate the industry while protecting investors.