The rise of cryptocurrency has heralded perhaps the most decisive shift in the history of modern civilization after the industrial revolution, and 7 Largest Well Known Bitcoin Investors In The World have been on top of it.
Bitcoin, the primary peer-to-peer digital currency, is breaking all barriers and is on the verge of gaining worldwide acceptance, as more and more stores, retail companies and businesses are starting to accept the cryptocurrency as a valid payment method. Almost every Wall Street juggernaut has been impressed with the pace with which Bitcoin is gaining acceptance and see it as a legitimate and even necessary investment.
But this change was impending, and the need for a decentralized digital currency was felt immediately after the dot-com boom in the 1990s. American economist and Nobel prize winner Milton Friedman presciently predicted the rise of cryptocurrency back then, when he said:
“One thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the Internet you can transfer funds from A to B, without A knowing B or B knowing A.”
Bitcoin has crossed the $4,000 mark and several analysts think that the meteoric rise of the currency will only continue. Goldman Sachs’ head of technical strategy Sheba Jafari said in July that Bitcoin investors should be “patient” as the digital currency would be headed to the $3,600 mark, which it indeed did (and passed easily). In May, the Bitcoin community reached a historic consensus in a conference in New York, which will result in faster transactions and increased capacity. According to the deal, Bitcoin’s block size limit will be doubled to 2MB. Previously, the hard-coded limit of 1MB per blockchain block prevented the network from processing more than about seven transactions per second. An increased block size removes one of the main hurdles in the growth and mass use of Bitcoin.
Not everyone has been on the Bitcoin bandwagon however. Warren Buffett was a notable detractor of the currency, calling it a “mirage” and saying that the idea that the currency had some meaningful intrinsic value was “a joke”. Bitcoin proponent Marc Andreessen (more on him later) countered Buffett’s rant by claiming that history is littered with old men crapping on new technology that they don’t understand.
It’s important to understand Bitcoin’s prominence not just in the sense of whether you’ll invest in it or use it, but also as it relates to other investments, like Paypal Holdings Inc (NASDAQ:PYPL) and The Western Union Company (NYSE:WU), which will be greatly affected by a new, cheaper way for people to send money to each other or pay for goods or services. Western Union has shown signs that it may be looking at allowing Bitcoin transfers itself in response, though its margins would likely be extremely low on any such transactions.
For a list of prominent sites where you can use the cryptocurrency, don’t miss our list of 17 Companies That Accept Bitcoin.
Given its bright growth prospects, famous investors (aside from Mr. Buffett) are now betting on Bitcoin openly. Check out the list of the 7 largest well known Bitcoin investors in the world, beginning on the next page.