According to Ruffer, young people will trade fewer cryptocurrencies after the end of the quarantine. The firm compares the rise in bitcoin to the ravages of the pandemic.
The British investment fund Ruffer made more than $ 1.1 billion in profit on its investment in bitcoin (BTC) that occured in November of last year. Hamish Baillie, investment director of the firm, confirmed this news, according to local media The Times.
The company sold at various times, taking advantage of the price rises of the cryptocurrency, between December and April of this year. Baillie did not specify amounts or dates on which Suffers sales took place.
Bitcoin had such a relevant rebound thanks to the stop of activities due to the pandemic. The investment fund considered that the millionaire stimulus package policies that the US government applied, also influenced the rise in the price of the cryptocurrency in recent months.
The executive added that, in part, the decision to sell the BTC happened because younger investors would not spend as much time trading cryptocurrencies now, due to the end of the pandemic confinements.
When the firm announced its investment, above $ 700 million, the price of bitcoin was just beginning the upward pace. It was just preparing to seek to return to the historical maximum at that time, the USD 20,000 that took the protagonist role in December 2017.
Since then, the price of the cryptocurrency created by Satoshi Nakamoto has been continuously breaking its all-time highs, reaching a new ATH in mid-April, above $ 64,000.
Ruffer Says: Bitcoin is a Unique Beast as a Safeguard of Value
Right after the investment happened, Ruffer tried to justify his actions to the public, through a letter released in January. In that letter, Jonathan Ruffer, president of the firm, described the investment in bitcoin as a correct move, taking into account the potential inflation at the global level and the fall of the national currencies.
Our underlying reasoning is that bitcoin is becoming a challenge to gold’s position as the only supranational currency, the one to be owned when national currencies crash. (…) Our judgment is that it is a unique beast as a new store of value, combining some of the most prominent features of technology and gold.
Ruffer’s position in the world of traditional investing is something usual. In recent years, more and more institutions and personalities in the financial world have been considering cryptocurrency as an interesting rival to gold when it comes to a store of value.
Cryptocurrency investment funds such as Grayscale have gained greater notoriety. Meanwhile, there are companies like MicroStrategy that have launched an aggressive BTC accumulation campaign.
Bitcoin’s current position as a store of value is already recognized by most banks. JPMorgan, Wells Fargo or UBS have already started offering their clients exposure to cryptocurrency through various forms of investment after having very critical positions towards BTC.
By: Jenson Nuñez