Guggenheim To Invest Up To $530 Million In Bitcoin After Roubini Twitter Meltdown

Guess we must be living in a world of inflation or another depression... contrary to what Keynesians such as Roubini would like us to believe.

Roubini's dime-a-dozen opinions and meltdowns aside, what really matters is when someone puts their crypto money where their mouth is. Examples of this include the publicly traded business-intel firm MicroStrategy, which on August 11 poured all $250 million of its planned inflation-hedging funds into the digital currency. Its stock is up 120% since then.

Another example is when Jack Dorsey's "other" company, Square, said in October it bought 4,709 bitcoins, worth approximately $50 million, about 1% of Square’s total assets. “Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose," the company said in a release. Square founder Jack Dorsey has been a advocate of the digital currency, saying in 2018 the cryptocurrency will eventually become the world’s “single currency.” However the founder of Twitter said it could take a long as a decade.

Or it may take far less than that, especially after PayPal announced a few weeks later that it had enabled crypto transactions for all its clients, sparking the latest leg higher in bitcoin.

Which begs the question: whereas in 2017 it was all the rage to pivot to "blockchain", we wonder how long before every public company converts some (or all) of its cash and equivalents into bitcoin similar to MicrosStrategy and Square, in hopes of reaping a quick surge in its stock price. And tangentially with that, how long before established asset managers do the same?

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William K. 2 months ago Member's comment

This would not be the first time in history that a bunch of "experts" have been fooled or otherwise mislead into incorrect pronouncements, with the result that the wrong people gained a large benefit.