Kanishka Sukumar, a 24-year-old consultant in midtown Manhattan, holds about a third of his wealth in bitcoin. He represents a new generation of “gold bugs” who question the stability of paper currency or seek better ways to protect savings, according to The Wall Street Journal.
One in five bitcoin users hold the cryptocurrency since they don’t want the government or banks controlling their money, according to a survey of 3,500 bitcoin users. That was the second biggest reason the survey respondents hold bitcoin. The main reason, according to the survey from data provider CoinDesk, was to own bitcoin as an investment.
Since bitcoin’s price volatility has eased, it has become a more viable store of wealth. Hedge Fund Manager Likes Bitcoin
Michael Novogartz, a hedge fund manager who owns bitcoin and left Fortress Investment Group LP last fall, calls bitcoin an “I don’t trust people” purchase. He owns only one ounce of gold, which was a gift, compared to a “significant” amount of bitcoin. He said bitcoin will attract people who otherwise would buy gold.
Bitcoin’s price volatility fell below gold’s for 28 straight days in April, the longest period ever. The volatility for bitcoin also fell below the Japanese yen, another flight-to-trade currency, according to FactSet and CoinDesk data.
Bitcoin’s popularity is also due to its quick, anonymous transactions. The number of bitcoin wallets doubled to more than 12 million in 2015, according to CoinDesk. Volatility Benefits Some
Bitcoin has also drawn traders seeking to profit from its volatility. CME Group, a derivatives marketplace, noted this month it is developing a bitcoin spot price index. The New York Stock Exchange tracks the price.
One user, 25-year-old Murat Akdeniz, a Cornell University business student, has been doing less bitcoin trading, on account of its volatility. He said it makes more sense to buy […]
