To give the cryptocurrency tide a definite boost, Massachusetts Mutual Life Insurance Corporation has purchased $100 million worth of bitcoin for its general investment account. This is going to appear as one of the big investments done by a public company to promote the growth of Bitcoin in cyberspace. Although Bitcoin already had a pre-established image in the fin-tech world, MassMutual recently purchased a big chunk of the cryptocurrency and now holds a significant stakeholding.
MassMutual purchased the bitcoin from a New York based portfolio organization NYDIG. The company has a massive share in the Bitcoin’s growing space and holds a total of $2.3 billion worth of assets in the cryptocurrency market. Although, the investment is a tiny speck in the Springfield investments, yet it shows that there’s a strong potential of growth for the cryptocurrency. With the surge in growth of the Bitcoin price during this fall, the price of a single Bitcoin peaked around $19,835 at its all time high. The current trade of the market circulates around $18,000 up to 150% year-to-date.
About Bitcoin Cryptocurrency
Bitcoin is not a fairly new term for us. Cryptocurrencies have now become a stable part of the fintech market. It is widely accepted, exchanged and used for sales & purchases around the world. The virtual currency works the same way as the online version of cash. You can now purchase products/services with Bitcoin; however, due to certain limitations on the legitimacy of the cryptocurrency, many shops around the world have discouraged its use on a commercial level. Collectively, certain states have downright banned the usage of the currency in the global market. The physical wallets which you use can easily become devoid without the private codes printed within the devices.
The only significance of a Bitcoin is as long as your cryptocurrency’s private code exists. And here’s one of the reasons why many popular businesses around the world discourage its usage.
The currency is highly volatile and if somewhere someplace a data center goes off, it can make your private bitcoin information disappear putting you in high-waters. According to Chainalysis, a digital forensics firm, studies reveal that almost 3.79 million bitcoins are already lost. The numbers make up for a total sum of 17% to 23% of the existing bitcoins which in accordance to the current market may cost as much as up to $19,000 per bitcoin. To read the complete analysis, visit here.
With MassMutual making an investment in the NYDIG, they not only purchased the currency itself but also acquired a small equity worth $5 million stake in the company. NYDIG also formerly known as New York Digital Investment Group was founded in 1851. Why NYDIG started making due investments in the cryptocurrency? It was clarified that this investment was part of a broad strategy where NYDIG took significant steps in taking advantage of the newer opportunities. As they claimed it as,
“Giving us measured yet meaningful exposure to a growing economic aspect of our increasingly digital world”
Although, the MassMutual Investment in NYDIG is only a drop in the pond for a company making huge investments worth $2.35 billion but NYDIG openly welcomes MassMutual.
As it confirms, it is the latest win for the investment firm in acquiring the big players.