Bitcoin (BTC) is the insurance that protects its holders against the devaluation of fiats due to the irresponsible policies of government officials. This insurance company invests a hundred million dollars in BTC. Irrational decision of a company that does not control risk management?
Bitcoin takes out insurance
According to a press release issued on December 10, 2020, the US insurance company, the Massachusets Mutual Life Insurance Co. (MassMutual), is the last public company to have acquired Bitcoins.
The company is said to have invested nearly $ 100 million in BTC, a strong possible signal for its adoption by the general public.
Bitcoin would no longer be considered a risky asset and an instrument of money laundering?
This investment, however, represents only a tiny portion of the company’s portfolio of assets, valued at $ 235 billion.
MassMutual invested $ 5 million in the capital of the company NYDIG, a high-growth company that would already have close to $ 2.3 billion in Bitcoins and other cryptos under management.
MassMutual declared to Wall Street Journal that he was looking for measured but meaningful exposure to the digital world.
An investment in BTC with controlled risks
The life insurance company joins the ranks of institutional players who have invested in Bitcoin, a trend that has intensified this year with the spread of the pandemic.
The choice of Bitcoin for a 169-year-old institution specializing in risk management, could exert a considerable influence on the perception of Bitcoin by traditional investors.
This double investment in the crypto sector suggests that MassMutual would be on the verge of acquiring an infrastructure specially dedicated to institutions.
NYDIG accompanied MassMutual in the buying process and would have facilitated the same process with many other insurance companies.
This copying that! The entry of a new institutional investor into the BTC markets is always seen as a positive signal, which in the short term may open the eyes of other institutions to the value of investing in Bitcoin as a safe haven. Will Bitcoin really become a must for institutional investors in the long term? The 2 conditions to be fulfilled for the BTC to be able to exert such pressure: a continuous depreciation of fiats and in particular of the dollar – That’s already guaranteed, Joe Biden will not spare the greenback – and a BTC at 100,000 USD – We are on the right path.
Litecoin, welcome in the Silver Age