Getting Started with Blockchain | Typical Bitcoin Whale with 200,000 BTC: Grayscale Investment Company

The recent record high bitcoin price has caused heated discussion, and many people are speculating on the reasons for its sharp price hikes. Among them, "whales" are more mentioned.

So what is the "big whale"?

In the field of cryptocurrency, “whales” are those investors who have huge amounts of money to buy and sell large amounts of encrypted digital currency, especially those who have sufficient funds to influence the market and cause large fluctuations in market prices, while “whales” are It is considered to have more than $56 million worth of bitcoin holders.

Usually, “whale” does not refer to an individual, but to some investment institutions and trading platforms. Some people divide it into early use whales, criminal whales and trading whales . If you want to know more, you can also go to the bitcoin "big whale" .

Grayscale Investments is one of the famous bitcoin whales. It was founded in 2013 by the Digital Currency Group. It is a world-renowned investment company specializing in cryptocurrency funds. Investing, there are 9 encrypted asset funds with large assets .

In December 2017, the scale of grayscale asset management was as high as $3.5 billion, but most of its capital inflows were concentrated on Bitcoin investment trusts, holding about 200,000 bitcoins.

At the end of May, the grayscale revealed in Twitter that the Bitcoin Trust Fund (GBTC) he managed reached $1.97 billion, accounting for about 94% of the company's total assets of $2.1 billion. Barry Silbert, CEO of Grayscale Investment, said on the Fox Business show:

Bitcoin is the gold of the younger generation. It has the same characteristics as gold – scarce, severable, portable, and actually practical.

The Bitcoin community is creating a new payment and financial network that will change the financial markets. At the same time, he also said that Bitcoin will replace gold and become a value storage tool in the portfolio.

But more importantly, tens of thousands of companies have been funded. Over the past five years, $5 billion has been raised. These companies are building a bitcoin infrastructure that makes it easy for people to get in and out of cryptocurrencies. highway. Once you use digital assets, there are almost no limits.

In addition to Bitcoin, the gray-backed trust property includes: ETH, BCH, ETC, LTC, XRP, XLM, ZEC, ZEN, and the prices are:

ETH Trust Fund, $13 million; BCH Trust Fund, $6.7 million;

ETC Trust Fund, $41.3 million; LTC Trust Fund, $0.7 million;

XRP Trust Fund, $5.7 million; XLM Trust Fund, $500,000;

Zcash Trust Fund, US$ 11.3 million; ZEN Trust Fund, US$ 4.1 million;

LTC Trust Fund, $0.7 million.

In the grayscale report, most of the inflow of funds is institutional investors. The cryptocurrency price is not simply controlled by the emotional fluctuations of retail investors. Therefore, the grayscale data has become used by many organizations to judge the blockchain wind direction and conduct. The benchmark for investment.

However, because cryptocurrency has always occupied a prominent position in the encryption ecosystem, many people are worried that the "mega whale" similar to the gray investment company will pose a threat to the price of bitcoin.

This kind of worry is not unreasonable, but as the size of the encryption market grows larger and the regulation becomes stronger , the influence of the "whale" will gradually weaken, which will have a smaller effect on the price of bitcoin.

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Author | Sanli produced | vernacular blockchain (ID: hellobtc)

『Declaration : This series of content is only for the introduction of blockchain science, and does not constitute any investment advice or advice. If there are any errors or omissions, please leave a message.