Grayscale is stockpiling of bitcoin

[Emily Perkins]

Grayscale crypto-fund keeps accumulating bitcoin and by the end of 2021 it will control 5% of total BTC circulation supply. Large supply will be distributed among handful of whales, then what? In order keep the value of bitcoin it must be wide-adopted, in current situation it's not realistic. Yes, it will serve as a store of value mostly for institutional investors but not well adopted if it's too expensive and scarce.
https://cointelegraph.com/news/grayscale-trust-sees-largest-ever-weekly-inflow-nears-500k-btc-in-total

[Cratoon]

Well, maybe bitcoin purpose in todays market IS the store of value.
Many people consider bitcoin "digital gold". You probably wouldn't  walk into market with an ignot of gold, that's impractical. But keeping your gold in safe deposit is a smart thing to do.

[DeathAngel]

Grayscale have been buying large % of newly mined supply for quite a while now. They clearly believe that the price is going to go sky high in the future. They feel bitcoin is a much better hedge than increasingly devaluing fiat currencies.

[mk4]

1. Grayscale is a fund. Though yes, they technically have a hold of the coins, but people invest in their fund to have exposure to bitcoin. So technically, it's not theirs, they just hold the coins.

2. Rich people will have huge amounts of coins. So? Bitcoin isn't here to fix financial inequality.

3. Not well adopted because it's too expensive? Let's not forget that bitcoin is divisible, and scarcity is actually an advantage in this case.

[Upgrade00]

As said above, Grayscale does not invest directly in bitcoin, they manage a host of funds for investors who cannot directly hold bitcoins, due to legal reasons, they also manage altcoins like Ethereum, Bitcoin Cash, litecoin and a host of others.
If you are interested in assessing companies who are purchasing Bitcoin, you can check out this spreadsheet made by Fillippone;

As I already was keeping track of companies staking Bitcoins, I decided to create my own version of this website, using Google Drive:

Bitcoin Treasuries (Link to Google Spreadsheet)

Large supply will be distributed among handful of whales, then what? In order keep the value of bitcoin it must be wide-adopted, in current situation it's not realistic.

What do you mean; 'keep the value'. Relatively stable assets like gold are not evenly distributed as they are available for anyone, and individuals with more fiat can purchase more, same thing in Bitcoin.

Yes, it will serve as a store of value mostly for institutional investors but not well adopted if it's too expensive and scarce.

Bitcoin can be used as a store of value for anyone who is interested, we have seen strong adoption in countries which have been hit by economic crisis, such as Turkey.
Also, Bitcoin cannot be termed expensive or scarce, its value is speculative and depends on market factors, which is dependent on the fundamentals of Bitcoin, if more people come to the realization of the qualities of Bitcoin, demand will go higher and so would the value, some would say it is undervalued at the current price.

[bekti3]

It seems to me that it is too early to predict what will happen with bitcoin. In the meantime, we need to solve the problems that exist now.

in this context it is a legitimate thing to do, because they already have initial hypotheses built through experimental conditions in the field. although at first glance it is too far to predict the future of bitcoin, because overcoming this kind of situation does not only require thinking, it must be assisted by accurate action and precise execution.

there are several possibilities that will experience Grayscale: first; The value of bitcoin's extensibility decreases, so that it experiences large losses, or the second one actually provides a favorable guarantee for the future.

[asriloni]

It seems to me that it is too early to predict what will happen with bitcoin. In the meantime, we need to solve the problems that exist now.

Problem for what? it's clear that more big parties have tried to accumulate more and more bitcoin and use it to be their portfolios.

Remember we have seen squre has added 50 million dollars worth of bitcoin into its portfolios. Square was also saying the possibility for the company to buy more bitcoin from the market and then used it as store of value.
The real digital gold is bitcoin.

If this trend will be happening in the future and it's not a big surprise to see the price of bitcoin will worth 100k.

[fillippone]

As said above, Grayscale does not invest directly in bitcoin, they manage a host of funds for investors who cannot directly hold bitcoins, due to legal reasons, they also manage altcoins like Ethereum, Bitcoin Cash, litecoin and a host of others.
If you are interested in assessing companies who are purchasing Bitcoin, you can check out this spreadsheet made by Fillippone;

As I already was keeping track of companies staking Bitcoins, I decided to create my own version of this website, using Google Drive:

Bitcoin Treasuries (Link to Google Spreadsheet)

Also, If you want to follow specifically Grayscale, I suggest you to follow this thread:
Everything you wanted to know about Grayscale BTC Trust but were afraid to ask!

I think I explained in a fairly complete, yet simple to understand, mechanics behind the success of Grayscale, some original work I think you cannot see elsewhere (The restricted shares accounting and forecast, for example).

[batang_bitcoin]

The article was recently published a few hours ago but it doesn't mean that the news is fresh. We knew it that Grayscale has been reported to be buying newly-mined bitcoin's.

Yes, it will serve as a store of value mostly for institutional investors but not well adopted if it's too expensive and scarce.

It's being used commonly as a store of value these days but not just those financial institutions/institutional investors. Every individual knows that it's best to hold bitcoin. And, it's not yet expensive if you're going long term to bitcoin. About its scarcity, it's known to have a fixed supply so you do have to expect it going to be scarce.

[Baofeng]

Yes, it will serve as a store of value mostly for institutional investors but not well adopted if it's too expensive and scarce.

That's what they said when bitcoin was just $10, "it's too expensive" and then if went from $100, people sold make money, and then it goes to an all time high of almost $20k, lessons here, there's no such thing as expensive bitcoin. If you are willing to buy it at certain price and used it as a store of value, chances are you can make a lot of money out of it. And that's why Grayscale are heavily investing on bitcoin today and the next coming years.

[Searing]

Yes, it will serve as a store of value mostly for institutional investors but not well adopted if it's too expensive and scarce.

That's what they said when bitcoin was just $10, "it's too expensive" and then if went from $100, people sold make money, and then it goes to an all time high of almost $20k, lessons here, there's no such thing as expensive bitcoin. If you are willing to buy it at certain price and used it as a store of value, chances are you can make a lot of money out of it. And that's why Grayscale are heavily investing on bitcoin todiay and the next coming years.

I have a whole group of friends/family/etc that to this day, think I'm frigging 'nuts' to be HODL'ing Bitcoin and Altcoins. OK...I'll give them the Altcoin angle, in that I paid

a pittance for them or they were forked, fall from the sky 'free' coins....but still..I mean really, 7 years of this since 2013..don't HODL it is all gonna fail!

Much like the elections in this country, people are voting for what they want to hear and not reality....just wait when climate change really ramps up...

Anyway, I've been hearing that BTC is too high priced from my 1st BTC at $150 till, even today at $14,067.00 USD!

So essentially what Grayscale is doing is what I should be doing yet for Bitcoin 'dust' ...manning up..and buying as much BTC as they can pull off as it goes up!

Because in Grayscale's situation..they have so much frigging Bitcoin already, that if it all goes 'kiddyrumpus' and dumps 1/3 in value for whatever reason...well

they are in for the long haul regardless as a result pump or not! IF BTC did dump 1/3 above...to keep the shareholder's happy they would have to HODL anyway...and

so why not 'double' down and assume a pump and get as much Bitcoin as possible now. If they are correct and we do have a pump to $20k Bitcoin ..they will

STILL frigging HODL..because a pump today...at 6.25 Bitcoin a block...and PayPal and other adoption stepping up...with the threat of world-wide inflation...well...

hell, I should be doing the same...buying as much BTC 'dust' as I can buy selling crap on eBay for BTC! In both our cases, we are in HODL mode and in it for

whatever (maybe dubious) reasons, so why not! Right now it is HODL because I want to! If Bitcoin price dumps 70% say, it will be HODL cause I have too! Either way

Grayscale and myself should be looking at this as 'long-term' speculation..if we are correct in 2021 we will look damn smart..if it dumps...we are so into HODL before this

point of buying now in 2020...it makes not difference...would still be HODL because we would be compelled to then as well

I should be selling stuff on eBay for Bitcoin dust, just as Grayscale is doing the same on 'scooping' up BTC as they can. So assuming we have both 'drank' the BTC

kool-aid..it is the likely path!

So IF you are already HODL'ing for as long as I have...well...you have already 'drunk' the kool-aid and whatever you pick up in BTC now is just gravy...boom or doom

and I'm fairly sure that is why Grayscale is being aggressive...they are already commited with the BTC they have in HODL mode...so just going for it as well.

Hell, I expect Grayscale will really pick up the pace of buying BTC on the next uptick...just for the verification that their strategy is working first half of 2020, so

why not continue and accelerate? At 18.5 million BTC in exisitence, out of 21 million BTC, the time is 'now' to grab up as much BTC or as I think of it 'virtual

realestate' as you can ASAP! Like land, all wealth comes from ownership of land, the more rare/scarce the more $$$ such is worth, like BTC. The lang grab will

accelerate (buying BTC) big time, as $20k approaches this year or in 2021...but again, I should be doing as I say above and accumulating more BTC dust as

I can afford such. It is what Grayscale does, and what I should do and pickup my own pace on buying BTC as well!

BTC/Crypto: Always Drama!

Brad

[hatshepsut93]

then what? In order keep the value of bitcoin it must be wide-adopted, in current situation it's not realistic. Yes, it will serve as a store of value mostly for institutional investors but not well adopted if it's too expensive and scarce.
https://cointelegraph.com/news/grayscale-trust-sees-largest-ever-weekly-inflow-nears-500k-btc-in-total

Actually, Bitcoin doesn't have to be well adopted to have high value, it just needs to have high demand, even if it's a demand from very few people. Also 5% of supply isn't that much, and even if you add all the other custodial services, the majority of coins are still held by users, And Bitcoin isn't some PoS system, having coins doesn't give you voting power on the network, so you don't have to worry that someone will overtake Bitcoin by controlling its supply.