What do top financial managers in investment companies think about allocating capital to buy Bitcoin and how do they assess the future of Bitcoin?
Andy Edstrom inan articleThe answer to this question, published on the Kevin Desk website. He is a leading economist and financial planner and author of Why Buy Bitcoin? (Why Buy Bitcoin) is a financial advisor and director of corporate investment at the Swan Bitcoin platform.
In its article, Adastram compares the current state of Bitcoin with the stock of Amazon in 2005; The company is now the third largest company in the world in terms of value.
From the day that Bitcoin priceIt was a fraction of a dollar. To this day, many are skeptical about the price and future of bitcoin. These doubts have been raised in the past about other valuable assets. Note the following:
- It’s a bubble.
- It is just one of the many investment options available.
- It has only a few million users.
- Used for illegal purposes.
- It is not scalable and cannot grow as much as it is valued.
- It does not and will probably never generate cash flow.
The above were things that were and still are being said about Bitcoin.
Now look at what they said in 2005 about Amazon stock:
After bursting Dot-com bubble (dot-com) As the Internet business improved, Amazon’s stock hit $ 35, sparking a heated debate over whether the company’s stock is worth that much.
Now back to 2020. Amazon is currently worth about $ 3,300 per share (90 times the 2005 price). In recent years, and on many occasions, Amazon shares alone have boosted the S&P 500 (US Stock Exchange Index).
Imagine being the wealth manager (financial and investment advisor and legal planner) of an investment company in 2005 and, like most of your peers, allocating no funds to invest in Amazon stock.
Going back to 2020, you’re still a wealth manager, and since you had no budget to buy Amazon stock in 2005, you probably won’t have a chance to run your business!
I (the author of the article) am a wealth manager and in 2005, many people, including myself, completely Market valueWe underestimated Amazon. At first, we thought we were dealing with an online bookstore, which later became a global bookstore. He then sold other goods online and globalized the sale. Next, to support this business, provide cloud infrastructure, and then…
Amazon’s success owes much to the company’s top management. However, one of the key factors in this great success was the creation of an efficient, Internet-based (and therefore network-based) marketplace for an online business that is open to all suppliers.
Without opening up the market to third-party sellers, Amazon could not have become an “everything store.” This increased the available inventory for sale and strengthened Amazon’s position as an online marketplace that everyone visits to buy any item.
As a result, Amazon has become a large online platform with a market value of more than $ 1.5 trillion and still continues to thrive in this market. Today, Amazon has only 7% of the sales market and can still grow much faster.
These days, my colleagues and colleagues in the field of wealth management are still making the same mistake about Bitcoin as they did about Amazon stocks in 2005.
Take a look at the list of criticisms of Amazon stocks 15 years ago; Bubbles, competition, underutilization, crime, lack of scalability, and lack of cash flow. But now, more than a decade after that10,000 bitcoins for two pizzas(Similar to Amazon’s first successful book order) Exchange, Bitcoin has clearly won the rare digital money market, just as Amazon won the unrivaled e-commerce market a few years ago and still continues to lead in this huge and talented market. . Bitcoin still has a long way to go.
The value of gold, which is a scarce and popular currency around the world, totals about $ 10 trillion. The bitcoin market, currently valued at $ 330 billion, accounts for less than 3% of the world’s scarce money market. However, the potential of the bitcoin market includes the entire money market and safeguards.
This overall market is several times larger than the gold market. This shows that Bitcoin has gained only less than 1% of the total existing market.
Hesitant investors say Bitcoin will never be able to innovate or launch new products, such as Jeff Bezos(Jeff Bezos), CEO of Amazon, will not do. But the reality is quite the opposite! Instead of being run by a management team led by a CEO and a limited number of employees, Bitcoin is an open platform with thousands of extremely hardworking software developers and entrepreneurs building additional shortcuts, applications and useful products on the network platform.
Like business owners who stock Amazon in such a way that the platform is a constant destination for users to shop for items online, these thousands of successful developers and entrepreneurs have made Bitcoin an ideal place to invest online.
Therefore, in terms of investment opportunity, BitcoinToday, it is almost where Amazon stood 15 years ago, and similarly, the value of Bitcoin is likely to grow significantly in the next 15 years as much as Amazon. As a result, there will be two types of portfolios: the portfolio of those who were reasonably priced to buy some bitcoin for themselves, and the portfolio of those who did not.
But, there will be only one type of wealth manager, because wealth managers who did not buy bitcoins for their customers will face the fate of people who never went to Amazon shares; They go away!