Former Clinton Economic Advisor Glenn Hutchins says people should stop focusing on Bitcoin price.
Due to the amazing growth in value, Bitcoin has forced its way into the minds of regular people all around the world, even though it has been in existence since 2009. Steady growth in value led to widespread coverage by mainstream media, with a highlight on Bitcoin price.
Some governments and banks wanted nothing to do with it, while a number of stock analysts and financial institutions recognized the growth and set about establishing themselves in the expanding market.
Nevertheless, the preeminent cryptocurrency is still the largest by individual market capitalization, but look back nine years and its value in comparison to the dollar was not even considered.
Pizza and Bitcoin price
It boggles the mind to think that in 2010, Programmer Laszlo Hanyecz ordered two pizzas with 10,000 Bitcoin in what has been immortalized as Bitcoin Pizza Day.
This is a prime example of how the perception of Bitcoin has changed over the years, alongside its value.
Co-founder of equity firm Silver Lake Partners Glenn Hutchins is no stranger to economic policy, having served as an advisor to the Clinton Administration in the early 1990s. His firm has holdings in a number of technology companies like data storage giants Seagate.
With a wealth of knowledge in both the technology and financial world, Hutchins insists that people around the world have become fixated on Bitcoin price, instead of its underlying technology.
Speaking to Financial Times, Hutchins says investors need to look at companies that are moving forward in the IT space, looking to develop Blockchain technology.
“It’s the biggest opportunity I’ve seen because the two most important things are business information and value. We can now move information around the world at the speed of light at no cost. Why can’t we do that with value in the future?”
Staying clear of FX trading
The hype around Bitcoin in 2017 saw a massive influx of users trying to get in on the appreciating price of the cryptocurrency. While this had an direct effect on Bitcoin price, many investors bought the cryptocurrency with little or no understanding of the underlying technology and its history.
Prices soared but that may be attributable to the exposure Bitcoin got in mainstream news, as Google’s search statistics showed at the end of the year. It’s likely that most people were buying Bitcoin to trade, as opposed to a long-term investment in the cryptocurrency.
A proven businessman with stakes in many companies, Hutchins believes that his investments in companies using Blockchain technology in innovative ways have far more potential to yield financial benefits while driving the development of new payment methods.
“It’s like every cognizable company that was coming up in the Bitcoin world I got a chance to look at and understand. What I’ve done in my mainstream career is invest in companies that use technology for a competitive advantage. That’s what I’m thinking about; I want to make sure I understand how that happens.”
“I’m the guy who’s thinking about building companies. Not much speculating in currency.”