Grayscale gold

Bitcoin Compared to Gold by Grayscale COO

Grayscale gold

The surge in the number of cryptocurrencies over the last few weeks has caused a lot of talks! Many important players in the financial sector are making their voices heard and giving their opinions. Recently, Michael Sonnenshein, Grayscale COO, spoke about the success of Bitcoin, comparing it to a form of digital gold, protected from inflation. If you don’t know him, Michael Sonnenshein is the Chief Operating Officer of Grayscale Investments. Grayscale Investments is one of the world’s largest digital asset investment funds with assets valued at approximately $11 billion. In an interview, Michael Sonnenshein has, among other things, defeating some of the arguments often put forward by Bitcoin skeptics.

Bitcoin is not a “fad”.

For Michael Sonnenshein, it’s clear that the Bitcoin craze is anything but a fad. More and more important players are now turning to crypto. For example, in October, Paypal’s announcement of the opening of cryptos services was like a bomb. Other important players soon followed suit. According to Michael Sonnenshein, the positions taken by important players should convince even the most reticent that crypto is a solution of the future.

Moreover, for Michael Sonnenshein, the COVID-19 pandemic has shaken the banking institution and investors. In the face of the latent economic crisis, more and more investors have reconsidered their view of Bitcoin.

The oft-heard argument “Bitcoin is not a currency because you can’t use it to pay for coffee” is no longer valid. Bitcoin is now seen as one of the essential steps towards the evolution of money and how to save capital. Moreover, the tremendous reaction of Bitcoin (and other crypto) after the market shock caused by COVID-19 convinced many that it was a robust asset with a good return on investment.

“I think they now understand that buying Bitcoin and storing it in their portfolio is a way of storing value, protected against inflation, a bit like digital gold (…) much more suited to the digital world we live in.

Michael Sonnenshein, Chief Operating Officer of Grayscale Investments.

Bitcoin, an opportunity for all investors

Michael Sonnenshein also returned to another argument. Indeed, some people think that the emission limited to only 21 million bitcoins is a brake on its development by limiting the number of users.

But Michael Sonnenshein does not see this as a problem. He was keen to point out that each bitcoin is divisible by 100 million. Indeed, satoshi represents the smallest possible division of bitcoin and is equivalent to 0.00000001 bitcoin. The possibility of investing in Bitcoin is therefore equivalent to 21 million times 100 million. In other words, according to Michael Sonnenshein, “taking into account the size of the world’s population, the possibility is given to all those who wish to invest in Bitcoin”.

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