The CEO of BitGo recommended investing at least 3% in bitcoins. In his opinion, the state program for supporting small and medium-sized businesses in the United States will only aggravate the economic situation.
Mike Belshe, CEO of California-based BitGo, predicts that the economic situation in the US market will deteriorate due to the short-sighted actions of the US government. According to him, many companies are forced to cease their activities due to the problems they faced amid the COVID-19 pandemic. Belshe notes that small businesses will soon begin filing for bankruptcy on a massive scale, and $600 per week unemployment benefits per person will look small compared to what the government would have to spend to “prevent the next wave of carnage.” Belshe recalls the negative consequences of the additional emission of money, which the US government is forced to undertake.
“Institutional investors are flagging this and recognize the devaluation will make cash hard to hold. They’re looking for alternatives, and it comes down to Bitcoin and gold. If you don’t have some Bitcoin now, it is time to put at least 3% of your net worth into Bitcoin. This is the lowest risk, highest asymmetric upside investment you will likely see in your lifetime.”
Belshe’s words about the mood among institutionalists are confirmed by news from the stock market. On August 11, 2020, MicroStrategy Incorporated announced that it acquired 21,454 BTC at at “an aggregate purchase price of $250 million, inclusive of fees and expenses.” According to MicroStrategy, bitcoin is used as a “primary reserve asset” in a capital allocation strategy that involves investing a significant portion of the company’s assets in alternative investments.
“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” said MicroStrategy CEO Michael J. Saylor.