Grayscale’s CEO says Bitcoin will win the election race between Trump and Biden.
A Democratic victory led by Joe Biden or a re-election of Donald Trump would make Bitcoin (BTC) the real winner. Industry executives, including DCG and Grayscale CEO Barry Silbert, say both a Trump victory and a Biden victory would boost BTC.
The optimistic stance of industry executives, despite the electoral risk, comes after Grayscale’s Bitcoin study.
Grayscale, a major cryptomoeda investment company with $7.6 billion in liquid assets under management, released a study on October 27 highlighting that the potential market for Bitcoin has expanded significantly in 2020.
In 2019, Grayscale found that 36% of US investors were interested in investing in Bitcoin. This year, 55% of investors in the US are looking to Bitcoin. The study says:
“Interest is increasing: More than half of US investors are interested in investing in Bitcoin In 2020, more than half (55%) of survey respondents expressed interest in Bitcoin investment products. This marks a significant increase over the 36% of investors who said they were interested in 2019”.
The increase of almost 20% represents a substantial increase in popular awareness over a short period. It also coincides with the growing demand for Bitcoin from institutions following the impressive 200% + recovery of Bitcoin since March.
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The participation in Bitcoin increases from 36% to 55% in one year. Source: Grayscale
Mainstream adoption strengthening BTC
The strong fundamentals behind Bitcoin and rapidly growing demand may offset the electoral risk in the fourth quarter.
For example, a particularly positive statistic showing the clear increase in demand for Bitcoin in 2020 is the rate at which individuals interested in BTC become real buyers.
According to Grayscale, of those individuals who have expressed an intention to invest in Bitcoin, 83% have bought BTC. The researchers wrote:
“Among those who reported investing in Bitcoin, 83% made investments in the past year, indicating that digital currencies are an increasingly attractive component of modern investment portfolios.
The higher conversion rate of individuals interested in investors is important because the potential Bitcoin market has expanded rapidly.
Moreover, the US market of about 32 million investors does not include other important markets such as Europe and Asia.
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Meanwhile, the number of investors familiar with Bitcoin has also visibly increased. The survey found that 62% of investors already know BTC, compared to only 53% in 2019. The study said:
“Based on this year’s survey, the market for potential investors in Bitcoin is 32 million – compared to 21 million investors just a year ago. This year, 62% of investors reported that they are ‘familiar’ with Bitcoin, compared to 53% in 2019”.
The potential market for Bitcoin in the US is now 32 million investors. Source: Grayscale
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The main reason behind the Bitcoin race remains its exponential growth potential. However, in the eyes of institutional investors, it is also a hedge asset.
Bitcoin, being a hedge asset against inflation and having demonstrated exponential growth potential, makes it an attractive portfolio asset for institutions and professional investors.
Consequently, the number of investors buying Bitcoin with a fraction of their capital or portfolio and building on existing positions has also increased. Grayscale’s research says:
“The factors that drove interest in Bitcoin last year have had even greater impact on investors in 2020. In 2019, 59% of respondents indicated that the ability to start with a small amount and increase their investment over time would be a motivating factor when considering Bitcoin investment products; in 2020, that figure rose to 65%. ”