The markets might be down but just in case you were worried; this is not the end of crypto. In fact Michael Saylor thinks that this dip is a great opportunity to stack some more sats. Again How much is he buying this time? We’ll tell you in a second, but first… The CEO of Nvidia thinks that we’re headed toward a blockchain-based Metaverse, a survey has revealed that hedge fund managers expect to invest hundreds of billions of dollars in digital assets in the coming years and more people than ever before have bought crypto in this well-known country.
The metaverse is a digital world where anything can exist, which is super cool but what does it have to do with blockchain? A lot actually…. First and foremost, interoperability and security. For example, Fortnite has sold more than $1 billion worth of digital paraphernalia. Weapons, upgrades, skins, etc. Fortnite has created a brand new digital economy which is amazing, except that everything depends on one centralized company.
If Fortnite shut down players would lose all of their digital items since they can’t withdraw them from the game. The good news is that blockchain fixes this. If you own your items as NFTs on Ethereum you can keep all of your purchases even if Fortnite goes offline. You could also trade items through decentralized marketplaces or sell anything you don’t want for crypto. There are so many advantages to putting items on the blockchain that in five or ten years every game is going to be doing it.
While that’s going to be a massive improvement for gamers, the blockchain metaverse isn’t just limited to entertainment. Digital land is another popular part of this growing ecosystem. That’s especially the case for Decentraland, where a piece of property just sold for record price of $913,000.
Purchases that big are bound to attract attention and sure enough, Nvidia CEO Jensen Huang has said, quote, “we’re right on the cusp” of a new digital metaverse. Those are some big words coming from someone who is in a position to see what’s coming.
MicroStrategy should rename themselves MacroStrategy, since the company has taken an all or nothing macro outlook that Bitcoin is the future of money. Even though MicroStrategy already owns more than $3 billion worth of Bitcoin, Michael Saylor has recently announced another bold plan to buy more.
Instead of issuing a new bond though, this time MicroStrategy is planning to sell up to $1 billion of class A common stock for, quote, “general corporate purposes, including the acquisition of Bitcoin.”
The management company Intertrust Group has published the results of a new survey that polled 100 hedge fund executives. In all, 98% of the execs said that they’re likely to invest in digital assets within the next five years. Breaking that down further, the executives predicted that eventually 7.2% of all of their investments will be in crypto.
The number is even higher in North America, where the hedge fund managers have predicted a 10.6% position in digital assets. Given that hedge funds currently have about $3.8 trillion in AUM (Assets Under Management), a 7.2% position in crypto would equal $270 billion dollars of investment. It’s a no-brainer that all of that money is going to have an outsized impact on the crypto market cap as prices go up, up and up.
UK crypto adoption
According to another new survey, a record setting amount of adults have invested in crypto in the United Kingdom. The results, courtesy of the Financial Conduct Authority, show that 2.3 million people in the UK now have some crypto, an increase of 400,000 compared to last year. The average investment size is also going up, from 260 British Pounds in 2020 to 300 British Pounds this year, equal to about $420 dollars.
Even though it’s super exciting to see all these new investors enter the market, there is one area of concern. According to the Financial Conduct Authority, not everyone who invests in crypto actually understands what they’re buying. In fact, only 7 out of 10 respondents were able to select the correct definition for a cryptocurrency from a list of descriptions.