In May, Paul Tudor Jones, one of Wall Street’s best-known hedge fund managers, said he had placed almost 2% of his portfolio in Bitcoin. He said that Bitcoin’s production cap made it an attractive alternative to the decline in the value of traditional currencies, which he believed was inevitable as central banks were printing more money to encourage an economic recovery.
“With each passing day that Bitcoin survives, confidence in it will increase,” Mr. Jones told CNBC at the time. He did not respond to a request for comment for this article.
Some state-owned companies have also plunged into Bitcoin due to concerns about the value of the dollar. In August, MicroStrategy, a Virginia software company, said it bought $ 250 million worth of Bitcoin to store some of the money it had in the company’s treasury.
Michael Saylor, chief executive of MicroStrategy, said in an interview that after not knowing anything about Bitcoin earlier this year, he became convinced of how the hard-coded limit on the number of tokens would help him keep his money. value over time. . He got so enthusiastic that he put $ 175 million of his own money in the coin. MicroStrategy then bought an additional $ 175 million worth of Bitcoin.
“For anything that anyone who has invested in as a store of value, it seems like it’s best to move it into Bitcoin,” Mr. Saylor said.
In October, Square said it was putting $ 50 million of its corporate treasury into Bitcoin. In 2018, Square also began offering digital currency on the Cash app, its phone app that people use to send money to friends and family. This month, the company, headed by Jack Dorsey, who is also chief executive of Twitter, said its customers held $ 1.8 billion worth of Bitcoin, up 180% from a year ago.