Billionaire investor Alan Howard, who has made sizable investments in the cryptocurrency market according to a report released by Bloomberg, will make more investments in cryptocurrencies like bitcoin in 2018, despite the recent correction.
“Hedge fund billionaire Alan Howard made sizable personal investments in cryptocurrencies last year and plans to put more of his own money into digital assets and the blockchain technology behind them, according to people with knowledge of the matter,” Bloomberg’s report read.
Several billionaire investors including Peter Thiel, who has led his venture capital firm called Founders Fund to invest around $20 million in bitcoin in mid-2017, have continued to express their optimism towards the market.
In December 2017, when the price of bitcoin achieved $14,000, the $20 million investment of Thiel in bitcoin had already returned hundreds of millions of dollars. While bitcoin has fallen to $6,000 in February, it has since recovered to $9,000. If bitcoin continues its recovery throughout March and surpasses the $10,000 in the short-term, the initial investment of Thiel’s Founders Fund would receive a yearly gain of over a hundred million dollars.
Major investors and institutional traders still remain highly optimistic towards the global cryptocurrency market because the recovery for the February correction has been relatively fast. This year, bitcoin suffered the third worst crash in history, declining by over 72 percent. However, contrary to its previous corrections like the 2014 slump wherein it took nearly a year to recover, bitcoin has started to rebound within less than two months.
The speedy recovery of bitcoin, rapidly rising demand, and positive media coverage of technology and finance influencers such as Twitter CEO Jack Dorsey has led investors to believe that bitcoin and the entire cryptocurrency market will likely initiate a bull cycle, as it always has done in the past, after a bear market.
During a conference held at the Economic Club of New York, Thiel further emphasized that if bitcoin continues to grow at an exponential rate, it will be able to compete against traditional assets and multi-trillion dollar markets, like the gold market.
“I would be long bitcoin, and neutral to skeptical of just about everything else at this point with a few possible exceptions. There will be one online equivalent to gold, and the one you’d bet on would be the biggest,” said Thiel.
The statement of Thiel echoed a similar sentiment relayed by Twitter CEO Jack Dorsey, who recently noted during an interview with The Times that bitcoin will be a global reserve currency one day, replacing the US dollar.
Dorsey noted that bitcoin will become the global currency of the internet, as he said “the world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin.”
Bitcoin and the cryptocurrency market have received significant media coverage and mainstream exposure over the past year. In some regions like South Korea, more than 70 percent of the population are already aware of bitcoin. But, the cryptocurrency market is still at its early stage, given that its valuation is comparable to leading banks like JPMorgan.
The entrance of large-scale investors like Thiel and Howard will play a major role in increasing the adoption rate of cryptocurrencies in the future.