Now it’s Christmas every week in Cryptoland
Sing this with me…. It’s beginning to look a lot like Crypto. Maybe a few months till Christmas folks, but for many in the world of cryptocurrency and blockchain it feels like Christmas every week just now, without the in-laws and mulled wine.
One can write a story on a crypto event and within minutes it is out of date. That is how fast this exciting, exhilarating and nerve shattering new industry feels just now. The Coinbase [cryptocurrency exchange] IPO coming up is one of the hottest and most anticipated public offerings to investment firms in New York. But, with all the hype if one looks a little deeper, there is a curious but welcome narrative developing.
The cryptocurrency industry is moving from retail investors like me, who have a seat on the rollercoaster, to the big boys, who own the theme parks. It has taken a while to arouse their interest, but they have now come to the party. What they bring is a bucket load of money, investment nous and a big ole network that has deep pockets. They are not what business school professors would call early adopters, far from it. But while they are only now entering the crypto sphere with their wonga, they are in fact still very early as crypto is only just getting a head of wind.
NYDIG, one of the leading providers of technology and investment solutions for Bitcoin in the USA, is a pioneer in the cryptocurrency landscape in funding tech infrastructure and startups in the Bitcoin scene. Bitcoin is the number one cryptocurrency by market capitalisation, currently over $1trillion as I write. And at this valuation it has now become interesting as an asset class to investors. This has now been evidenced by this month’s $200m growth capital investment round at NYDIG.
In these type of investment rounds, one expects the new kids on the block who are already knee deep in these types of investcryptocurrency
ment to pony up. Outfits like Bessemer Venture Partners and Fintech Collective come to mind. In this case they did invest in the NYDIG round. But, what makes this recent investment into Bitcoin technology more notable to small fry like me is the other names who opened their wallets.morgan Stanley, New York Life, Mass Mutual and Soros Fund Management are all firmly at the investment table. This heralds a new dawn for the retail investors who have invested their pocket money into cryptocurrency, while being scoffed at by financial advisers, banks and other stuffy types who are feeling the pressure. I forecast a UK bank will offer crypto services to its customers within 2021.
It’s no wonder that Ross Stevens, founder and executive chairman of NYDIG, said, “I am thrilled by what this group of incredible investors will mean for NYDIG, but especially for Bitcoin.” Bringing the likes of Soros to the table adds real gravitas to a growing industry that can at times fly by the seat of its pants.
Bitcoin advocates such as Anthony Pompliano, an early investor in Blockfi, and hedge fund manager Anthony Scaramucci both see Bitcoin trading around $100,000 by the end of 2021. That is a 100 per cent gain from where it is now. Time will tell, but as institutional money starts to flow into the system it could signal upward momentum and Christmas might come early for the boy scout investors like me. One thing is for certain, professionals like Soros don’t play to lose. Just ask the Bank of England, who got a bloody nose from him in 1992.
Jim Duffy, Create Special