One River CEO Eric Peters: Institutional Interest In Bitcoin Is Astounding
One River Asset Management CEO Eric Peters says that since the company revealed its exposure to BTC is ‘well in excess of $1 billion,’ the institutional interest in Bitcoin has been ‘astounding’.
Peters was speaking at Bloomberg’s Year Ahead conference and said his One River asset management firm now had well over $1 billion worth of Bitcoin and other digital assets, believed to be Ethereum.
The One River CEO said in a world where there is an abundance of all things, Bitcoin’s limited supply makes it ‘unique’ and that’s what is attracting institutional interest.
Peters said the pandemic induced era of printing “free cash” would devalue the dollar, so the demand for a hard money store of value was driving institutions towards Bitcoin.
We are in a unique period right now,” Peters said. ‘It is the period seen many times throughout history where governments become extremely indebted, monetary policy becomes less effective, and ultimately governments need to issue lots of debt and begin actually spending.’
‘Typically, when they do that, they try to unburden themselves from the debt they’re incurring by debasing the currency that they’re issuing that debt in. And ultimately, those who hold that currency lose their spending power,’ determined the One River founder.
Eric Peters: Bitcoin Is Superior To Gold
Peters highlighted Bitcoin and gold’s similar properties, but because of Bitcoin’s technological properties, the One River CEO said it would one day be worth more than gold, and that it was ‘wildly underpriced’.
‘Bitcoin has technology properties and will look different tomorrow, and next year, and in a decade to come,’ said the One River founder. ‘This makes Bitcoin unique to gold because if gold has looked the same two thousand or two billion years ago, then it will look the same in two thousand and two billion years from now.’
Peters also compared Bitcoin’s fixed supply to the unknown supply of gold, saying it’s determined fixed supply made it absolutely unique among all assets.
‘It’s unlike any asset that I’ve seen in the world in the sense that there’s no supply response to the price,’ added Peters. ‘If Bitcoin went up five times in value, or 10 times, or 100 times, there wouldn’t be more Bitcoin produced. You can’t say that about really any other asset in the world.’
Institutional Interest In Bitcoin Is Astounding
Like MicroStrategy, One River is helping drive institutional interest in Bitcoin. The asset management firm published an article The Case For Digital Currencies on its website last month after announcing its large exposure to Bitcoin.
After revealing his firm’s investment in Bitcoin, Eric Peters says the interest from institutions has been ‘astounding’ and claims all US institutions are discussing Bitcoin and the digital asset space.
‘The number of institutions that have been filling my day with calls and inquiries about this is astounding. What’s happening is almost every big, credible institution in the US is having discussions about this… Many of them are calling us to ask,’ said the One River CEO.
‘They’re fascinated by this and they should be because this is the first and last asset class that will appear in our lifetime.’
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Institutions Are Clearly Waking Up To Bitcoin
Eric Peters is the CEO and founder of one the big asset management companies in the US. With over $1 billion worth of Bitcoin and other digital assets under management, it’s clear they see Bitcoin as a sound investment.
With the pandemic causing havoc to the global economy and giving governments the perfect excuse to devalue their currencies, Bitcoin is a perfect hedge for any cash rich balance sheet.
MicroStrategy started the corporate exodus, and the institutional interest in Bitcoin has mushroomed ever since.
Michael Saylor and MicroStrategy are hosting the inaugural Bitcoin for Corporations today and tomorrow, and the institutional interest there is bigger than ever.
Institutions know what’s happening with the dollar and they need a store of value. Most have never bothered with gold, and if Bitcoin wasn’t around they might have to look into it.
But it is around and institutional interest in Bitcoin is proliferating.
Author: Tommy Limpitlaw
Is Bitcoin legal?
As of February 2021, Bitcoin is legal in most countries. The US, UK, Canada, Japan, and all other developed nations it is very much legal. However, the legal status of Bitcoin varies in other jurisdictions, and there are regular rumours that India and China are likely to ban Bitcoin, but things change.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
How long does it take to mine 1 Bitcoin?
On average, the time it takes for miners to mine BTC is 10 minutes. But they don’t just mine 1 BTC. Mined Bitcoins are created with every new block and these produce the Bitcoin block reward which at the moment is 6.25 BTC, so you could say it takes less than 2 minutes to mine each Bitcoin.
How much does it cost to mine 1 Bitcoin?
There is no exact science for the cost of mining a bitcoin, because the price will change every two weeks maximum. This is because there’s a Difficulty Adjustment that ensures it takes about 10 minutes to mine a block. And with other costs, such as your mining equipment, electricity, and other costs, it’s estimated that the average price to mine a bitcoin is around $12,500.