• Do Bitcoin’s ‘Kenny from South Park’ comparisons hold true?

  • If given the choice between investing in Bitcoin and purchasing Tesla stock, many people outside of the crypto-community would opt for the latter. Why? One common reason is the latter’s successful, promising returns, whereas the former is still regarded as a volatile asset class.

    However, while “successful innovations make life easier for customers,” they do not always make those companies good investments. This was recently expressed by one of Morgan Stanley’s top executives.

    Dennis Lynch, the Head of Counterpoint Global at Morgan Stanley, has sold his Tesla (share) reserves. Instead, he endorsed Bitcoin during a speech at Morningstar’s annual investment conference. Lynch didn’t stop there, coming up with an interesting analogy to make his point.

    He drew parallels between the flagship coin and Kenny McCormick, one of the main characters in the award-winning animated series South Park.

    “I like to compare Bitcoin to Kenny from South Park, you know, the guy dies every episode and reappears.”

    A well-considered analogy?

    The main character died 98 times in the aforementioned series. 98 times, to be exact.

    Bitcoin, for its part, has been declared dead by critics 430 times. In fact, the oldest “obituary” for Bitcoin was written on December 15, 2010, and the most recent was written just three days ago.

    Nonetheless, here we are. Despite recent market corrections, Bitcoin was trading well above $42,000 at the time of writing.

    It’s also worth noting that, while Lynch described BTC as “anti-fragile,” he also acknowledged the risk of a regulatory crackdown. Nonetheless,

    “… it kind of sits in the portfolio in a small way, that it possibly can go right when the rest of our portfolios are having something go wrong… Given Bitcoin’s longevity, ten years from now is a small bet.”

    Consider how companies that hold Bitcoin have been performing recently.

    MicroStrategy was the first publicly traded company to invest substantial treasury assets in Bitcoin. It owns over 114,024 Bitcoins worth more than $4.7 billion after the latest purchase, accounting for 0.543 percent of the total BTC supply.

    Square is another example, with its stock increasing by about 22% in 2021. In fact, Square announced a new $170 million investment in Bitcoin in early 2021, in addition to its $50 million purchase in October. It currently has 8,027 BTC (0.038 percent) in its portfolio, worth more than $333 million.

    Meanwhile, other major corporations, such as Tesla and Coinbase, have reaped enormous benefits from their BTC acquisitions. Needless to say, it does not appear that there will be too many obituaries in the future.

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