Why Global Elites Are Desperately Hoarding Cryptocurrency?

08/09/2020

Since the initial hype surrounding Bitcoin and subsequent concerns, cryptocurrency has come a long way. Within a year of Bitcoin's initial release, several other cryptocurrencies began to appear. Fast forward a few years later, and the term cryptocurrency is no longer shrouded in mythology. Many cryptocurrencies have been widely accepted as legitimate trading systems, and there is no sign of slowing down.

As a decentralized currency, cryptocurrency has received praise and opposition. Although they may relax the government's currency monopoly and provide cheaper digital transactions, they also have the ability to promote crime and black market activities. As a result, many governments will eliminate encryption as a task. But despite the fact that cryptocurrencies are notorious for their shortcomings, cryptocurrencies are not popular among ordinary citizens or global elites.

Fanatic Interest in Cryptocurrency

Cryptocurrency has attracted the attention of individuals and governments. According to a CoinDesk report, the Bulgarian government seized approximately 200,000 Bitcoins during the 2017 organized crime suppression. At the time, the value of the Bitcoin was $3.3 billion. Over the years, governments in many other countries have confiscated cryptocurrencies and auctioned them. A leaked UN report even indicated that North Korean leader Kim Jong Un ordered hackers to steal millions of dollars from cryptocurrency exchanges.

If this is not enough to indicate the popularity of cryptocurrencies, what about the fact that Dadiani Fine Art has partnered with blockchain platforms to sell Andy Warhol's cryptocurrency works? According to an art curator behind the mission, wealthy customers are interested in buying "a huge amount of Bitcoin." She went on to say that the reason people are interested in buying large amounts of bitcoin is to avoid slippage, which is the difference between the expected transaction price and the actual transaction price.

The rich are not only interested in acquiring cryptocurrency; they are also determined to protect it. Bloomberg reported in 2018 that global elites kept their bitcoins in secure vaults on three continents. Security measures for these vaults include multi-factor authentication, isolated offline computers and extensive monitoring. At the time of the report, it was said that these bunkers were worth $10 billion worth of Bitcoin. So, why would millionaires and billionaires invest a lot of money to bury their cryptocurrencies in the ground? Why is everyone determined to do as much as possible?

The Value and Future of Crypto

A popular prediction about the future of cryptocurrency is that everyone will start using it. In fact, many people believe that cryptocurrency may become the main trading system in the near future and may completely replace fiat currency. Once they take over the global economy, they can be considered to add value. This may be why the rich are desperately hoarding their cryptocurrency.

Many people believe that digital currency is a reliable measure of value across countries and continents. As a result, they have the potential to grow rapidly in the next few years. Recognizing the fact that cryptocurrency can replace legal tender, if this change itself occurs, global elites may be racing against time to maintain their wealth.

If cryptocurrencies do achieve this feat, then they will also bring money to the world. This means that cryptocurrency will be able to determine personal wealth like legal tender. If this is not an investment for acquiring and storing large amounts of cryptocurrency, then it is meaningless for the wealthiest individuals and institutions. Instead, we are seeing more and more evidence that they are interested in it, and this can indicate the direction of digital currency development.