{"id":150541,"date":"2021-01-09T01:44:00","date_gmt":"2021-01-08T22:44:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/opinion-bitcoin-is-headed-for-a-supply-shortage-and-that-will-keep-pushing-up-prices\/"},"modified":"2021-01-09T01:44:00","modified_gmt":"2021-01-08T22:44:00","slug":"opinion-bitcoin-is-headed-for-a-supply-shortage-and-that-will-keep-pushing-up-prices","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/opinion-bitcoin-is-headed-for-a-supply-shortage-and-that-will-keep-pushing-up-prices\/","title":{"rendered":"#\n  Opinion: Bitcoin is headed for a supply shortage \u2014 and that will keep pushing up prices"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4e6e62b9458\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4e6e62b9458\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-bitcoin-is-headed-for-a-supply-shortage-and-that-will-keep-pushing-up-prices\/#Bitcoin_has_matured_from_a_netherworld_currency\" >Bitcoin has matured from a netherworld currency<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-bitcoin-is-headed-for-a-supply-shortage-and-that-will-keep-pushing-up-prices\/#Anthony_Scaramucci_and\" >Anthony Scaramucci and<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-bitcoin-is-headed-for-a-supply-shortage-and-that-will-keep-pushing-up-prices\/#Brett_Messing\" >Brett Messing<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Opinion: Bitcoin is headed for a supply shortage \u2014 and that will keep pushing up prices<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Bitcoin_has_matured_from_a_netherworld_currency\"><\/span>\n  Bitcoin has matured from a netherworld currency<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000118469\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       In the financial world, \u201cwhat\u2019s past is prologue.\u201d Overly rosy perspectives often set off the boom-and-bust cycles that have become all-too familiar over the past 20 years, from the dot-com bubble to the mortgage crisis. <\/p>\n<p> Over the past 12 years, we\u2019ve watched bitcoin\u2019s<br \/>\n        BTCUSD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/31322028\/realtime\" class=\"negative\">-0.21%<\/bg-quote><br \/>\n       evolution from netherworld currency to major institutional commodity. In that time, it has fluctuated widely, introduced as a near-valueless currency in 2009, growing in value to $19,000+ nearly nine years later, then losing 76% of its market value within a year, before beginning a steady climb in the second half of 2020 that puts its value at more than $30,000.<\/p>\n<div class=\"paywall\">\n       We believe that bitcoin has matured and now is the right time to invest in this widely popular currency. Here\u2019s why: \u00a0<\/p>\n<p>Today, there is significantly more demand for bitcoin than there is supply. About 900 new bitcoin are mined daily, and three market participants alone \u2014 PayPal, Square, and Grayscale Bitcoin Trust \u2014 purchase considerably more than 900 bitcoin a day because of high investor demand. If this dynamic continues, and we believe it will, much higher prices lie ahead for the dominant cryptocurrency.\u00a0 <\/p>\n<p>At the same time, the risks associated with investing in bitcoin\u2014namely the potential for theft\u2014have been substantially diminished over the past three years, with the U.S. Office of the Comptroller of the Currency authorizing national banks to provide cryptocurrency services. Several banks have also started to provide institutional bitcoin custody services, deposit-taking, custody and fiduciary services for digital assets. <\/p>\n<p>What\u2019s more, the IRS bestowed favorable tax treatment on bitcoin by treating it as property that produces capital gains and losses. And in another positive sign, PayPal rolled out bitcoin trading to its 238 million U.S. users.\u00a0 <\/p>\n<p>As a consequence of these regulatory and infrastructure developments, Wall Street has turned bullish on bitcoin.\u00a0 Rick Reider, BlackRock\u2019s chief investment officer, recently commented on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2020\/11\/20\/blackrocks-rick-rieder-bitcoin-can-replace-gold-to-a-large-extent-.html\" class=\"icon none\">CNBC<\/a> that bitcoin \u201ccould take the place of gold\u2026it\u2019s so much more functional than passing a bar of gold around.\u201d\u00a0 AllianceBernstein issued a report on Nov. 30 entitled \u201cCryptocurrencies in asset allocation \u2013 I have changed my mind!\u201d\u00a0 J.P. Morgan issued a report on Dec. 3 declaring \u201cthe adoption of bitcoin by institutional investors has only begun.\u201d<\/p>\n<p>Bitcoin is now on the menu for asset allocators.\u00a0 It has been embraced by several legendary investors, including Paul Tudor Jones, Stanley Druckenmiller, Bill Miller and Alan Howard, and a wall of institutional money is coming.\u00a0 Hedge funds are starting to buy, headlined by the Tudor BVI Global Fund and One River Asset Management.\u00a0 Insurance companies are starting to buy, with MassMutual recently buying a $100 million starter position in bitcoin.\u00a0 Pension funds are starting to buy, including two Fairfax Retirement System pension funds making investments into a Morgan Creek Digital fund.\u00a0 Public company treasurers are starting to buy, with MicroStrategy<br \/>\n        MSTR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202561856\/composite\" class=\"negative\">-0.77%<\/bg-quote><br \/>\n       and Square<br \/>\n        SQ,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205989440\/composite\" class=\"positive\">+0.82%<\/bg-quote><br \/>\n       account for nearly $1.5 billion in bitcoin purchases.\u00a0 Registered investment advisers are starting to buy, with legendary RIA founder Ric Edelman launching the RIA Digital Assets Council. \u00a0<\/p>\n<p>The adoption floodgates are<br \/>\nopen. <\/p>\n<p>SkyBridge initiated a substantial position in bitcoin on behalf of our flagship funds in November and December, which, at today\u2019s prices, is worth $200 million, and has launched the SkyBridge Bitcoin Fund, which provides mass-affluent investors with an institutional-grade vehicle to gain exposure to bitcoin.\u00a0 <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>We credit our \u201caha\u201d moment to Michael Saylor, the chief executive of software company MicroStrategy, who bought $1.2 billion of bitcoin in 2020.\u00a0 During a recent <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=5_nrqJxpJbQ\" class=\"icon none\">SALT Talk<\/a>, Saylor made a persuasive case that bitcoin, as the undisputed winner of the cryptocurrency wars of 2017, is the dominant digital monetary network.\u00a0 Like Saylor, we believe that when a digital network\u2014think <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a>, Amazon and Google\u2014achieves a market capitalization of over $100 billion, the horse is out of the barn.\u00a0\u00a0 <\/p>\n<p>Bitcoin is an evolutionary step forward for the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> of money, which has steadily progressed from barter to beads to gold to fiat currency.\u00a0 Bitcoin is the first store of value in the world where supply is entirely unaffected by increased demand. Some 18.5 million bitcoin have been mined so far, and by 2025, over 20 million will be in circulation.\u00a0 Yet there can only ever be 21 million bitcoin because of a stipulation set forth in its source code.<\/p>\n<p>To place that number in context, there are 42-plus million people in the world with a net worth exceeding $1 million, meaning there are twice as many millionaires today as there will ever be bitcoins in circulation. <\/p>\n<p>Today, the fact remains that bitcoin\u2019s demand exceeds supply, and it is not even close.\u00a0 Economics 101 tells us how this calculation will work out.\u00a0 What more do you need to know?<\/p>\n<p><em>Anthony Scaramucci is the co-founder of SkyBridge Capital and the SALT Conference. Brett Messing is the president and chief operating officer of SkyBridge.<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Anthony Scaramucci\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Anthony_Scaramucci_and\"><\/span>Anthony Scaramucci and<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Brett Messing\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Brett_Messing\"><\/span>Brett Messing<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D1CEC5A9CC09%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Opinion: Bitcoin is headed for a supply shortage \u2014 and that will keep pushing up prices &#8221; Bitcoin has matured from a netherworld currency In the financial world, \u201cwhat\u2019s past is prologue.\u201d Overly rosy perspectives often set off the boom-and-bust cycles that have become all-too familiar over the past 20 years, from the dot-com&#8230;<\/p>\n","protected":false},"author":1,"featured_media":150542,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-150541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/150541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=150541"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/150541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/150542"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=150541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=150541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=150541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}