One of the best-performing assets of 2019 so far is Bitcoin, the number one cryptocurrency. This is due to several reasons, chief among which is the U.S-China trade war which has been on for some time now.
The war has reportedly forced several investors, especially those of Chinese origin, to invest in Bitcoin as a safe haven. Beyond individual investors, institutions are also entering into Bitcoin especially with the onboarding of Bakkt, but it may not be stopping there.
Crypto Twitter influencer Peter McCormack believes countries are also accumulating Bitcoin despite the seeming hatred they have for it. Countries, especially the United States have been quite hostile towards Bitcoin and the cryptocurrency space as a whole.
This has been in the form of tough regulations for the industry as well as a call to ban Bitcoin because it threatens the country’s fiat currency, the U.S Dollar.
Bitcoin is the future?
One of the most aggressive Bitcoin evangelists in the space and Co-founder at Morgan Creek, Anthony Pompliano is known for saying Bitcoin is the future. He has said this in response to several dignitaries on Twitter including U.S President Donald Trump.
Several other enthusiasts may share this conviction as Bitcoin has managed to survive for the past ten years and done better than many other assets would have done within the same time period.
McCormack’s claims may be premised on this and the fact that other investments such as gold that compete with bitcoin as a store of value have several shortcomings.
For instance, the cost of moving gold from one part of the world to another is incredible, compared to the cost of moving Bitcoin of equivalent value. This makes it a preferred store of value and he believes governments have possibly started accumulating it too as a future investment.
Significant progress being made
Even if Bitcoin is not being accumulated as an investment in countries, it has made significant progress in terms of adoption so far. New Zealand recently approved the asset as a legal means of payment for wages and salaries in the country.
Apart from that, several major companies including automobiles now accept Bitcoin in exchange for goods and services. If the trend continues, countries buying and storing Bitcoin may not be very far from now.