Even a 170-year old insurance company Mass Mutual has invested $100 million of its capital in Bitcoin. This could be one of the most important events for Bitcoin in the year, with a firm that is shy of two centuries old, buying the cryptocurrency for its general account.
According to Bitcoin pioneer Max Keiser,
“Insurance company money is the most conservative and deepest pool of capital in the world.”
“Now that Mass Mutual has made it okay for these companies to invest in bitcoin, the floodgates have opened even wider than they did when Paul Tudor Jones and Michael Saylor started putting billions into bitcoin.”
The move by Mass Mutual sets the precedent for more insurance companies to enter the markets.
The insurance firm also invested in an equity stakein US Digital Investments Group, which has said in the past that it is dedicated to Bitcoin.
Startlingly high volumes of Bitcoin transactions are becoming commonplace in the markets as institutional investors get their feet wet and reshape the markets to suit their long-term objectives. Earlier in the week, data surfaced showing $700 million being transferred in two separate Bitcoin transactions.
More organizations and individuals across the world are taking bold steps in the cryptosphere to save their money from inflationary costs. With a 15% annual increase in money supply over 4 years, the purchasing power of wealth in cash could be cut in half, further reinforcing the assertation that Bitcoin should be used as a hedge against inflation.
Bond holdings and real-estate holdings, among other types of investments would have to increase in growth 15% or more to be worthwhile. More investors in the markets have found that Bitcoin is able to surpass 15% in many instances.