We Need to Stop Focusing on The Price of Bitcoin, Says Former Clinton Advisor

We Need to Stop Focusing on The Price of Bitcoin, Says Former Clinton Advisor

The recent spike in Bitcoin’s value has the cryptocurrency at the center of attention. Public figures, professionals and regular men and women everywhere are talking about it. And, if there’s one detail that keeps people talking, it’s certain its price.

It is true that Bitcoin has its limits and that it could one day be overtaken by its competitors. But, nonetheless, the cryptocurrency is one of the safest bets out of all cryptocurrencies.

Seeing all the excitement surrounding Bitcoin, Glenn Hutchins can’t help but recommend caution to investors. For him, the most important thing about the cryptocurrency is not its price, but rather the technology behind it.

A Dizzying Price

Back in 2008, very few people would have expected to see Bitcoin get to where it’s at. In 2010, Bitcoin was nearly completely boycotted. Nobody wanted to accept payment in Bitcoin because it was not worth very much.

A certain story about buying a Pizza back in 2010, by a programmer named Laszlo Hanyecz, illustrates this fact quite well.

The latter once bought two pizzas for 10,000 Bitcoins. “I would have paid 10,000 Bitcoin for pizza. Two big pizzas, so that I had leftovers for the next day. I like having leftover pizza. You can even make the pizza yourself and bring it to me, but what I would like is delivery in exchange for Bitcoin.” Hanyecz later sold all his Bitcoin for about $4,000.

That same number of Bitcoin, today, would be worth more than 160 million dollars. This clearly shows how much our perception of virtual currencies has changed over the years.

Bitcoin was created in 2009 and at the time, it was very complicated to acquire. A year later, it was only worth a few cents. However, since then, it has seen a steady increase in value. In 2017, it shattered all its previous records by exceeding a value of $20,000 USD.

Do Not Focus on The Price

Co-founder of an investment company and former Clinton advisor in the 90s, Glenn Hutchins is a master of economic policy. His company owns shares in several big tech companies like Seagate. And thus, with his knowledge of the financial world, Hutchins would like to highlight the recent events surrounding Bitcoin. For him, people are missing the point. They are only looking at its value and not the technology behind it.

When interview by the Financial Times, he said that investors should focus on companies that are trying to develop blockchain technologies, rather than focusing on its price, which is only due to speculation. “It is the biggest opportunity that I’ve seen because two of the most important things in business are information and value. We can now move information around the world at light speed with no cost. Why can’t we do that with value in the future?”

Investing to Advance Technology

All the recent buzz around Bitcoin has caused a huge influx of people wanting to take advantage of Bitcoin’s price to try and make some money. As a result, investors are buying digital currency with little to no knowledge about the technology behind it or its history.

The price of Bitcoin has been soaring lately, but this could just be the result of recent media coverage. It seems like most people are buying Bitcoin to exchange it quickly, not to make long-term investments.

But, as a knowledgeable businessman, Hutchins believes that investing in companies that use blockchain technology has far more potential, while also contributing to the development of new ways to make financial transactions.

“It’s like I got to look at every company that was coming up in the Bitcoin world and understand it. What I’ve done in my mainstream career is invest in companies that use technology for a competitive advantage. That’s why I think about. I want to make sure that I understand how that happens.” He also adds that he invests as an entrepreneur and not by speculating on the currency market.

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