- Bitcoin has spent 12 years being dismissed or attacked by institutions and he individuals that represent them
- Those individuals are starting to come round to the benefits of the deflationary cryptocurrency
- The past year alone has seen the tide shift in terms of Bitcoin’s institutional reputation
Bitcoin has since its inception been the antithesis of the traditional banking and investment sector, but the last 12 months have seen an incredible turnaround. Traditional financial institutions and individuals associated with them have spent over a decade scoffing at Bitcoin and its claims to be a better alternative to traditional currency, but in the past year we have witnessed a huge conversion.
One by one, institutions and individuals who once held Bitcoin and the crypto world in contempt have shifted their view of the cryptocurrency, thanks in main to the actions of governments in dealing with the economic ramifications of the coronavirus pandemic. Here we summarize some of the more notable comments on Bitcoin from the past year that illustrate just how far Bitcoin has come in changing the opinions of those who once despised it.
George Ball, Ex-Prudential CEO
The former Prudential CEO current and Chairman and CEO of wealth management firm Sanders Morris Harris told Reuters last week that he had recently changed his stance on Bitcoin:
I’ve never said this before, but I’ve always been a blockchain, cryptocurrency, Bitcoin opponent. But if you look right now, the government can’t stimulate the markets forever. The liquidity flood will end sooner or later […] So the very wealthy investor or the trader probably turns to Bitcoin or something like it as a staple.
Paul Tudor Jones, CEO of Tudor Investment Corp
Paul Tudor Jones, whose company has $39 billion worth of assets under management, famously came out in favor of Bitcoin in May:
The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.
Mathew McDermott, Head of Digital Assets Goldman Sachs
The bank’s new Head of Digital Assets said last week that institutional interest in cryptocurrencies was rising:
We’ve definitely seen an uptick in interest across some of our institutional clients who are exploring how they can participate in this space. It definitely feels like there is a resurgence of interest in cryptocurrencies.
Fidelity Digital Assets
Fidelity launched their cryptocurrency facility in June 2019, and in a report last month reiterated their bullish stance on Bitcoin:
“The unknown consequences of record low interest rates, unprecedented levels of global monetary and fiscal stimulus and deglobalization are all adding fuel to the fire of [Bitcoin] awareness and adoption.”
“[Bitcoin is] increasingly integrated with traditional markets and portfolios.”
The Wall Street Journal reported in May that JPMorgan had the prior month taken on Coinbase and Gemini as customers, highlighting the increased trust in cryptocurrencies by the bank that is run by the supposedly anti-crypto Jamie Dimon:
What is notable is that JPMorgan was willing to extend services to businesses built around bitcoin. Such businesses have for years been blocked by banks from opening up accounts […] The move is the latest in a string of positive developments for bitcoin and another sign that Wall Street is becoming more comfortable with the business of cryptocurrencies.
JPMorgan also released a report in June which said that the cryptocurrency market had “passed its first stress test” after recovering in line with other markets after the coronavirus-inspired crash.
Bitcoin’s Time Has Finally Come
Bitcoin’s rise in popularity and its conversion of those who once despised it will be music to the ears of Bitcoin fans. There are of course those who still criticize the cryptocurrency for having no financial basis, most notably U.S. president Donald Trump, but this often comes down to a lack of understanding, or more pertinently a lack of willingness to understand it.
The rampant money printing the wake of the coronavirus has led to banks and hedge funds looking for alternatives in order to protect the value of their assets, and at last it seems that Bitcoin’s time has finally come.