The world has woken up to the fact that the central banks are a curse, rather than a boom to the global economies, and their time left is slowly coming to an end because of new technologies and currencies.
People are starting to park their money in digital currencies, like bitcoin, rather than parking them in fiat currencies. This is primarily due to the negative interest rate policy as well as zero interest rate policy of the central banks, which explains the sharp rise in the price of bitcoin, this year as seen in the chart below.
Billionaire resource investor, Carlo Civelli, believes that the central banks cannot get away with all the monetary printing. And I believe that the more they print, the more they push investors away from wanting their fiat currency.
“If we all talk about the end game and a scenario of total collapse, I can see the governments telling everybody that your money is now worthless and the bonds you own are now worthless. You all have to take a haircut," said Civelli.
The institutional investors are recognizing this outcome, hence, they are the largest group of bitcoin buyers.
Jeremy Millar, founder and managing partner at Ledger Partners in London, believes that people at hedge funds and family offices contribute 50% to 90% of the bitcoin’s current $6.4 billion market cap.
"What is clear, though, is that over the last two years, bitcoin has emerged from its 'hacktivist' origins to a more institutionalized ecosystem which includes the participation of hedge funds, traders, and professional investors," said Millar, reports Reuters.