Galaxy Digital Co-President Discusses Two Factors That Dissuade Institutional Crypto Purchasing.
Crypto Professional - Jamie
With a variety of popular companies investing into Bitcoin, what is holding it back?
In recent years, firms like MicroStrategy and Tesla have taken major positions in Bitcoin (BTC). However, this practice has not yet established the standard for other businesses. Damien Vanderwilt, co-chair of Galaxy Digital, suggests that protection and taxes will serve as a barrier for investing in Cryptocurrency.
Vanderwilt goes on the explain that the primary concern of many institutions is safety and security. If institutions were guaranteed this protection, many more might be enticed to invest and buy Bitcoin. Another factor that institutions are unsure of are the tax implications of trading crypto-assets.
The Bloomberg interviewer noted that "5% of finance executives" are considering transactions through Bitcoin. This 5% statistic comes from a study recently released by the Gartner consulting group, describing the findings of the February survey of 77 finance executives. "Only 5% of finance executives interviewed in February 2021 said they intended to keep Bitcoin as a business asset in 2021," Gartner said in a public release on the study on Feb. 16.
MicroStrategy, MassMutual, Tesla and Square have all donated millions of dollars to Bitcoin. MicroStrategy has invested more than $1 billion on the asset and recently invested an extra billion to buy BTC. Square has officially confirmed they plan to bulk buy Bitcoin with estimates of up to $170 million worth as they further their Bitcoin investment. Last fall, the company invested $50 million on the coin.
"There aren't any unsolvable challenges or stuff that businesses can't get confident with, but it takes a little time," Vanderwilt said of the two topics he described.