How global brands start to embrace cryptocurrency?

1 - Substitute for gold. Gold went up by about 27% in 2020. It has been a traditional favorite among Indian households, but its profitability far surpassed the quadruple growth of bitcoin in 2020.

The institutional acceptance of bitcoins is changing the minds of many skeptics. As a result, some investors are considering moving a small portion of their portfolios from gold to bitcoin.

2 - Global interest generated by many large companies and funds. For example, in October 2020, PayPal allowed investors to store cryptocurrency in their wallets. Microstrategy also placed some of its securities in bitcoin in 2020.

Due to similar actions by funds and large companies, the Grayscale Bitcoin Trust has grown from 2 billion dollars in AUM (assets under management) to 20 billion dollars a year.

3 - Lack of supply. Bitcoin offer is limited — just 21 million coins. There are about 18 million mined bitcoins in circulation. Unlike fiat currencies such as the dollar, this offer cannot be increased by any government or central bank, which gives a lot of comfort to crypto investors.

An overwhelming number of investors are worried about a surge in money printing by central banks during the covid-19 pandemic, which attracts them to bitcoin. For example, the US Federal Reserve's balance jumped from 4 trillion dollars to about 7 trillion dollars in 2020, a 75% increase in one year, which leads to a rapid increase in the supply of dollars.

4 - Acceptance. In 2020, the issue of cryptocurrency was raised at the state level in many countries. Many countries as well as the US states have adopted a series of measures and decrees, which eased the way for many crypto startups and investors. This will further attract investments to these states.

Back in March 2020, the Supreme Court of India canceled the Reserve Bank's of India (RBI) ban on payments related to bitcoins, setting the stage for a revival of cryptocurrency investment in India.

While it is difficult for investors to estimate the value of digital assets, many experts agree that there is a growing need for alternative assets like gold. Therefore, nowadays, one can often hear about various funds and organizations investing in cryptocurrency and blockchain technologies.

Recently, Bridgewater Associates founder Ray Dalio commented that he is considering cryptocurrencies as investments for new funds that offer clients protection against fiat currency depreciation.

In the past two years alone, over 120 venture capital firms have made two or more investments in blockchain companies.

For example, last week, BlackRock Inc., the world's largest asset manager, took its first step towards cryptocurrency. The company has notified regulators that cash-settled bitcoin futures will be an acceptable investment in two of its funds.

There are two main types of venture investors in blockchain and cryptocurrency companies:

• Traditional venture capital funds — many of which specialize in tech startups that have added several blockchain companies to their portfolios. Some examples include multibillion-dollar venture capital funds like Sequoia Capital and Andreessen Horowitz.
• Cryptocurrency-oriented venture funds — these funds only invest in blockchain and cryptocurrency companies. A lot. The Digital Currency Group, for example, has made about 60 investments, mostly initially, in blockchain companies since their founding in 2013.

While most of the venture funds on Crypto Fund Research's Top 50 Blockchain Venture Funds are of the traditional variety discussed above, all three top funds are trust funds. These include Digital Currency Group, Pantera Capital, and Blockchain Capital.

The banking industry is also forced to make innovative decisions, as the latest dizzying rise of bitcoin and its increasing popularity among investors, corporations, and competitors in the financial technology sector make the banking industry fear that they will be left behind. For example, JPMorgan co-president Daniel Pinto told CNBC in an exclusive comment that the bank is open to considering accepting bitcoin: "There is no demand yet, but I'm sure there will be at some point."

In early February, another company, Goldman Sachs, held a private forum for employees and customers with Mike Novogratz, CEO, and founder of crypto firm Galaxy Digital.

From Brazil to Nigeria, people turn to bitcoin for different reasons than most of their speculative counterparts in North America. Precisely because this is the most profitable way for them to conduct international transactions.

Large companies, brands, and foundations are well aware of this. Therefore, business representatives and investors are increasingly thinking about using the possibilities of cryptocurrency for themselves. And the Cratos crypto exchange service will allow you to create a corporate account with the ability to accept, store, send and exchange cryptocurrency for fiat funds, and fiat funds for cryptocurrency.