Bitcoin Continues to Take the Financial System by Storm as Billionaire Investor Stanley Drunkenmiller Announces Long-Bitcoin Position
Bitcoin is Taking the Financial System by Storm - FinTech Capitalizing while Legacy Banks Flounder
This week billionaire fund manager Stanley Drunkenmiller became the latest ultra-high net worth investor to announce he is long Bitcoin. Drunkenmiller, widely considered to be one of the world's greatest investors, joins other Institutional Bitcoin Bulls like Paul Tudor Jones, Jack Dorsey, Michael Saylor, and Steve Wozniak in expressing their belief in Bitcoin as a Store of Value & Inflationary Hedge. In his recent interview with CNBC Drunkenmiller disclosed his long-Bitcoin (and long-Gold) positions, explaining that Bitcoin has become an attractive store of value, especially to Millennial & Silicon Valley investors. Despite holding a much larger position in Gold than in Bitcoin, Drunkenmiller also stated that, "... if the Gold bet works, the Bitcoin bet will probably work much better because it has a lot more beta to it."
Drunkenmiller's observation regarding Silicon Valley adoption of Bitcoin can not be understated. As the table above illustrates, companies that have embraced Bitcoin and the digital payment revolution are thriving , while Legacy Banks continue to flounder. Below are recent examples of noteable companies embracing Bitcoin and capturing the opportunity:
Square: Square’s CashApp Bitcoin Revenue soars 1000% to $1.63 Billion in Q3, 2020
PayPal: PayPal saw enough interest following its October 21st Bitcoin announcement that the company has increased weekly crypto purchase limits twice - from $10,000 to $15,000 in early November, and again from $15,000 to $20,000 on November 12th .
Silvergate Capital Corp: Silvergate has become a leading Bank for Cryptocurrency related Businesses. Despite being a micro-cap bank ($491 million market cap) Silvergate has become an excellent benchmark for the health of the cryptocurrency market. According to a recent report from Forbes, Silvergate accepted $586 million in cryptocurrency deposits in Q3 2020, bringing its total cryptocurrency assets to $2.1 billion as of September 30, 2020, compared to $1.5 billion as of June 30, 2020.
