8.5 C
Manchester
October 3, 2022
Image default
Bitcoin

Institutions are investing in Bitcoin to stay rich, says BlockTower Capital’s Ari Paul

Ari Paul talked about Bitcoin and institutional adoption

The co-founder and chief investment officer of cryptocurrency asset investment firm BlockTower Capital, Ari Paul, argued that institutions are not buying Bitcoin in an attempt to earn large amounts of wealth, but buying BTC to protect their assets.

In a SALT Talks interview with John Darsie, first identified by Daily Hodl, Paul argued that investors are taking a defensive approach when they invest in the nascent cryptocurrency space in an attempt to remain wealthy. He said:

“We have been talking to many billionaires in the financial world. It is such an interesting change of mind. They are now thinking defensively. They are thinking hard enough about their billionaire friends who have 10% of their Bitcoin net worth. ”

In Paul’s words, they are thinking that if they do not invest in BTC and the cryptocurrency continues to appreciate, they will not be “in that rich club” or will not be “invited to parties”, depending on where they are in the hierarchy.

This, he said, leads them to think that they need to passively allocate funds to the cryptocurrency space “just to keep up”. He added that “it is not a question of getting rich, but of staying rich”. The aggregated data from BlockTower’s CIO shows that investors with high net worth are entering the market.

He cited data that show that Bitcoin is leaving cryptocurrency exchanges, which points to a “massive institutional purchase”. Major movements outside exchanges are believed to be the result of over-the-counter negotiations by institutional investors. As reported by CryptoGlobe, when the price of BTC exceeded $ 30,000, $ 1.7 billion in Coinbase exits suggested that institutions continue to buy. The price reached a new record close to $ 42,000.

Paul added that institutional investors will help reduce Bitcoin’s well-known volatility. As these investors are “looking to buy more in the downturn” and “are not going to sell with a change in trend”. Although he admitted that Bitcoin’s volatility is not going to go away, it should gradually decline.

Source: Cryptoglobe

Related posts

We need cash, says the president of the NBP, Adam Glapiński –

Aparnna Hajirnis

Euro – a colossus on clay legs. Part 3

Aparnna Hajirnis

Important changes at BitBay: a new investor from the US –

Aparnna Hajirnis

Leave a Comment