London Daily

Focus on the big picture.
Saturday, Sep 13, 2025

The world's biggest crypto fund manager says bitcoin is the next step in the evolution of money - and 'I can't use it to buy coffee' is no longer a sound argument | Currency News |  Financial and Business News | Markets Insider

The world's biggest crypto fund manager says bitcoin is the next step in the evolution of money - and 'I can't use it to buy coffee' is no longer a sound argument | Currency News | Financial and Business News | Markets Insider

Bitcoin is not a fad that will fade away, said Michael Sonnenshein, managing director of Grayscale Investments. Investors understand that "buying Bitcoin and putting it in their portfolio is meant to be a store of value, inflation hedge, a digital gold, a digital form of money". Investors should not get hung up over the fact that there are only 21 million Bitcoin that will ever exist, because each coin has a 100 million units.
Investors like the fact they can buy a fraction of the coin and add to their position over time, the crypto asset manager pointed out.
Bitcoin is not a fad, and not being able to use it to buy a cup of coffee is not a reasonable argument, according to Michael Sonnenshein, managing director of Grayscale Investments, the largest digital currency asset manager.

Growing involvement of major players in the financial services realm "really speaks to the staying power of the asset class and validates other people getting involved," he told Business Insider in an interview.

Sonnenshein, whose firm oversees almost $11 billion crypto assets, said the global pandemic this year was another key driver behind Bitcoin investments. Grayscale saw investors with different motivations and appetites to allocate the digital token to their portfolios this year.

Investors are no longer hanging on to the idea that because we're not using Bitcoin to buy a cup of coffee, it has failed as a currency, Sonnenshein said.

"I think they understand today that buying Bitcoin and putting it in their portfolio is meant to be a store of value, inflation hedge, a digital gold, a digital form of money that is much better suited to the digital world we live in today versus historical stores of value like gold which would have been certainly much more applicable to a world characterized by physical exchanges. They view it as one of the most important next steps in the evolution of money and what constitutes a store of value."

After the pandemic brought money markets to a grinding halt earlier this year, Bitcoin's sustained power and demonstration of resiliency shows that it was one of the best-returning investments, he said.

For skeptics who question the token's validity across conventional financial institutions, he said: "Bitcoin was born outside of the traditional financial services realm, it was not born into an arena where it was to be traded on a stock market or that it was going to be custodied in the same way that stocks or bonds are."

Sonnenshein thinks people should not get hung up over the fact that there are only 21 million Bitcoin that will ever be in circulation.

Each coin is divisible to the eighth decimal place, meaning that there are a 100 million units inside each Bitcoin. That is one of the asset's features investors like because they can buy just a fraction of the coin and add to their position overtime, Sonnenshein said.

"When you think about how many millionaires or billionaires or even just what the global population is, there's 21 million Bitcoin times the 100 million units within each Bitcoin," he said. "There's a possibility for anyone who wants to get involved to be able to own some piece of the Bitcoin protocol."

The world's most popular cryptocurrency has had a wild ride this year. It is up 117% so far in 2020, and its price exploded above $18,000 this week.

The price began surging higher in October after PayPal announced it would allow its users to buy, sell, and hold the token. Jack Dorsey's payments company Square invested in nearly 5,000 Bitcoins in October, US tech firm Microstrategy bought 16,796 coins, and UK startup Mode also joined in on the frenzy. Crypto bulls say it is only a matter of time before it is widely adopted.
Comments

Oh ya 5 year ago
Don't even mention Bitcoin and gold in the same breath. One is real money and has been for 5000 years that you can tuck into the bank of Sealy and the other is a dot on a computer that a hacker or your government can take in a heartbeat. Bitcoin is worth less than the dollar which is backed by nothing. The States says that they have 8000 tons of gold backing it but nobody has seen that since 1950. Maybe gold plated tunstin at best. Remember folks if you can't hold it in your hand you don't own it. Gold in hand has no counter party risk. And ask yourself a honest question, what has driven up bitcion 117%this year. Yes dealers flipping and driving up the price to fleece more money from the stupid people

Newsletter

Related Articles

0:00
0:00
Close
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
×