Claimed Benefits
Michael Saylor, the chief executive at MicroStrategy Inc., mentioned the claimed benefits of bitcoin in a reply to Musk’s poll tweet. Converting Tesla’s balance sheet to bitcoin “would deliver diversification, inflation protection, & more upside for all investors in a tax efficient manner,” he said.
The little more than decade-old market for digital assets has roughly quadrupled from its 2020 year-end value. Some technical indicators suggest bitcoin’s ascent may be due a pause, according to Katie Stockton, founder of Fairlead Strategies LLC.
Bitcoin aside, more people are being drawn to the crypto economy for so-called decentralized financial services as well as non-fungible tokens, which allow for digital collectibles like online art.
Blockchain networks like Ethereum and Solana continue to upgrade to deliver such functionality. The nascent metaverse—an immersive online environment that creates a virtual reality—also looms as a cryptocurrency playground.
“We will see corrections along the way, no doubt,” said Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore. “But we’re at a point in the cycle where there is a lot of hype about the asset class and the extent to which it will play a role across industries beyond finance such as gaming, entertainment, social media and art.”
—With assistance from Dave Liedtka.
This article was provided by Bloomberg News.