It’s important to put money where your mouth is. Of course, if it is BTC, then putting bitcoin where your mouth is makes all the difference.
The proclamation of former Facebook executive and investor Chamath Palihapitiya that he owns $5 million in bitcoins, around 23,000 bitcoin at current CoinDesk BPI prices, is an exercise in confidence for the electronic currency.
The Winklevoss brothers, benefactors of an early relationship with Facebook founder Mark Zuckerberg, have been considered some of the biggest investors in bitcoin, but that has been relatively underreported in comparison to Palihapitiya publicly discussing his bullish views of bitcoin.
No one can say for sure when the Winklevii purchased their hoard of bitcoins, but they’ve probably made off quite well.
At least the Winklevosses are backing up their words with bitcoin actions. But sometimes, their comments can be a bit too much.
Chamath Palihapitiya’s stance
Palihapitiya told an audience at TechCrunch Disrupt earlier this year that bitcoin is ”everywhere that you have currency pressure, everywhere you want to basically shield your assets.”
“After that, it will probably become a payment mechanism,” he said at the TechCrunch Disrupt NY conference, held last April 27-May 1.
"Google didn't choose to be in the US dollar business, Google is a business that is amazing that just happens to get paid in US dollars."
It's still very murky water for an investor to wade into. Bitcoin-based businesses may have to shift strategy based on governing bodies and the type of policies they enact on decentralized electronic currencies.
But no matter what happens, Palihapitiya's philosophy is that bitcoin won't have that same type of pivot that bitcoin companies will likely face.
Growing investment interest
Yet there is resilience, especially in more mainstream investment circles. An executive of Fortress Investments, a hedge fund that manages over $54 billion in assets, has recently become advocate for bitcoin.
There are vehicles for investors to get involved in bitcoin now, a stark difference from last April's bitcoin price bubble when there was very little access to this type of investment.
SecondMarket, for example, which courts accredited investors with verifiable net worth (income exceeding $200,000, a trust worth $5 million, etc.) has been raising money for a bitcoin trust since September.
The price attracts investors seeking a return, but one has to wonder where the top might be.
For those paying attention, volatility is a concern. Bitcoin may be a wise investment, but its not for the faint of heart.
These are the good days, but the price is destined to go back down. All it takes are negative stories about it, sure to come alight as it is used as a tool for a number of things other than speculation.
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