98  Blockchain

As per an Economist online article published on 7 August 2021, the com-

bined market capitalisation has exploded from $330bm to $1.6trn as of

7 August 2021. It is roughly equivalent to the nominal GDP of Canada.

The holders of the coins have also become more sophisticated and deep-

pocketed as well now as it is not only the retail investors that are trading in

Bitcoin but also financial institutions. Financial institutions account for about

63% of trading cryptocurrencies (Economist – https://www.economist.

com/finance-and-economics/2021/08/02/what-if-bitcoin-went-to-zero).

As per SkyBridge Capital, a Hedge fund, run by Anthony Scaramucci, the

following is an illustration of their portfolio:

• Within the diversified $3.5bn fund, they began investing in crypto in

November 2020. They launched a $500m Bitcoin fund in January 2021.

Bitcoin now accounts for 9% of the value of its main vehicle. The Bitcoin

fund was already up by 5% and the dedicated fund is worth $700m.

As more and more financial institutions are widely showing interest in

cryptocurrencies, a big question gets raised: What would be the impact

if Bitcoin collapsed? How will it impact the financial systems and more

importantly the GDP and society?

Figure 4.1  Cryptocurrencies between 2014 and 2021.