Topic: Big companies have started investing in bitcoin as a safe asset (Read 550 times)
Yeah, a couple more institutions jumping in will make it harder for a whale or a group of whales to influence the price. The greater the market cap, hopefully the less violatile bitcoin will be and we'll have solved the basic problem the token has.
September 20, 2020, 09:00:02 AM
Whether Bitcoin is a safe haven asset or not has been a debate since a long time and it truly doesn't matter because people who truly believes in bitcoin would still invest in it anyway.
The Institutional investors have already invested in bitcoin in the ICO hype in 2017 and have left the rally. They will only invest in it when the next hype comes pumping bitcoin.
They are just in it for the money and not because of the tech. If/when bitcoin truly succeeds only then will people realize it's true potential and join the bitcoin rally.
Us being the early investors will reap the benefit out of bitcoin at that time. So invest in it only if you truly believe in it.
The Institutional investors have already invested in bitcoin in the ICO hype in 2017 and have left the rally. They will only invest in it when the next hype comes pumping bitcoin.
They are just in it for the money and not because of the tech. If/when bitcoin truly succeeds only then will people realize it's true potential and join the bitcoin rally.
Us being the early investors will reap the benefit out of bitcoin at that time. So invest in it only if you truly believe in it.
September 20, 2020, 07:01:07 AM
They are saying safe asset because there is an option to hold when the price dumped. Big companies are entering the mainstream and the hype is still there. Even other popular companiea are adopting bitcoin. Also, they are truly amazed with bitcoin's being a store value that is why they are now investing into this kind of cryptocurrency investment.
September 20, 2020, 05:21:34 AM
Good move, but a little risky. First of all they'll have to keep safe those bitcoins no matter what. They are responsible for holding them. If they had $500 million in banks, they didn't have to be that safe, because the banks would be responsible. But now they do, one mistake and they may lose them all. I'm writing this, because if I'm not mistaken, they'll have to move some of those thousands bitcoins frequently, otherwise why did they buy them? Just for safe heaven? Even the safe heaven must be moved someday.
Secondly and most important, the price. If they had bought couple weeks ago, they would save a lot of money. Actually millions of dollars. I see big companies like that, choosing bitcoin as an asset, but do they know when to buy? Have they made their studies?
P.S, are the $500M the reason why the bitcoin's price pumped a little?
Secondly and most important, the price. If they had bought couple weeks ago, they would save a lot of money. Actually millions of dollars. I see big companies like that, choosing bitcoin as an asset, but do they know when to buy? Have they made their studies?
P.S, are the $500M the reason why the bitcoin's price pumped a little?
September 20, 2020, 05:07:48 AM
Congratulations on this great company in your country that decided to invest in Bitcoin. It is something that we are noticing in some parts of the world. I also wish like you that it is an escalating response so that other companies want to invest in Bitcoin.
I coincidentally found this link worth reading.
Should Yould Invest in Bitcoin blockchain ETFs?
https://www.google.com/amp/s/www.nasdaq.com/articles/should-you-invest-in-bitcoin-blockchain-etfs-2020-09-17%3famp
I coincidentally found this link worth reading.
Should Yould Invest in Bitcoin blockchain ETFs?
https://www.google.com/amp/s/www.nasdaq.com/articles/should-you-invest-in-bitcoin-blockchain-etfs-2020-09-17%3famp
In fact, this is not a company from my country, but an article on a bitcoin portal in my country that talks about that company
Anyway, I agree with you and I also expect this to become a trend that other big companies will follow.
September 19, 2020, 07:57:50 PM
Congratulations on this great company in your country that decided to invest in Bitcoin. It is something that we are noticing in some parts of the world. I also wish like you that it is an escalating response so that other companies want to invest in Bitcoin.
I coincidentally found this link worth reading.
Should Yould Invest in Bitcoin blockchain ETFs?
https://www.google.com/amp/s/www.nasdaq.com/articles/should-you-invest-in-bitcoin-blockchain-etfs-2020-09-17%3famp
I coincidentally found this link worth reading.
Should Yould Invest in Bitcoin blockchain ETFs?
https://www.google.com/amp/s/www.nasdaq.com/articles/should-you-invest-in-bitcoin-blockchain-etfs-2020-09-17%3famp
September 19, 2020, 05:44:25 PM
While companies are interested investing in cryptoccurrency especially bitcoin, is because companies is interested to secured their finance in order to not to get lost in terms of currency lost of values,and also while companies adventure into cryptoccurrency especially bitcoin is in order to make interest like banks who adventures into crypto trading in order to make profit.
September 19, 2020, 02:38:47 PM
Even abrupt changes in the Bitcoin's exchange rate aren't a hindrance to the growing popularity of this cryptocurrency among large investors. This may indicate that they see the potential of the cryptocurrency sphere, and Bitcoin in particular. Investors wouldn't risk such amounts if they doubted the further rise in the value of bitcoin. However, it should be understood that these investments are long-term and are not calculated for one year of waiting.
September 19, 2020, 10:27:00 AM
In my opinion, big companies have started to do the right thing. Because Bitcoin is safer asset than fiat I think. Bitcoin won't be affected by everything that fiat money is affected by. For this reason, I love Bitcoin more than fiat. Besides, if we compare them on profitability, Bitcoin is more profitable than fiat in the long run.
September 19, 2020, 05:35:31 AM
Every big company has a financial advisor, surely big companies decide to invest in Bitcoin for a reason. It is impossible for big companies
to make decisions without careful calculation and consideration. Those who are starting to be interested in Bitcoin will definitely see Bitcoin's
performance is quite good compared to investing in stocks, because investing in stocks that are affected by the current pandemic situation.
This is very good news for the crypto community with big companies starting to invest in Bitcoin, hopefully this can increase the trust of many
people. And there could be mass adoption of Bitcoin as expected.
to make decisions without careful calculation and consideration. Those who are starting to be interested in Bitcoin will definitely see Bitcoin's
performance is quite good compared to investing in stocks, because investing in stocks that are affected by the current pandemic situation.
This is very good news for the crypto community with big companies starting to invest in Bitcoin, hopefully this can increase the trust of many
people. And there could be mass adoption of Bitcoin as expected.
Certainly this decision was not made without careful analysis and study of the market.
Here I will translate 1 more part of the article below which may better explain the reasons for this decision and the whole process.
https://crobitcoin.com/unicorn-kompanije-kupila-bitcoin-za-425m-dolara/?utm_source=email&utm_medium=newsletter&utm_campaign=news
Michael Saylor, CEO of MicroStrategy, has not always been a fan of Bitcoin. Back in 2013, he tweeted: "Bitcoin's days are numbered. It seems like it's only a matter of time before they experience the same fate as online gambling. ”
Saylor admitted to reading numerous books and articles about Bitcoin and blockchain. When he realized "what this is about", he admitted that he was wrong.
The COVID-19 crisis only further convinced him of the usefulness of Bitcoin and he is currently preaching about his discovery in the company. He gave all the managers homework as everyone was in line with the new company policy.
He said Bitcoin was a much safer investment and that he felt like he was sitting on a $ 500 million melting iceberg. This is how he wants to secure an investment for more than 100 years.
Very interesting change of opinion, what do you think?
EDIT: I also stumbled upon a very detailed interview from the CEO of MicroStrategy, it's very interesting: https://www.coindesk.com/microstrategy-michael-saylor-never-sell-bitcoin
September 18, 2020, 08:47:17 PM
With the development of the financial system, banks are slowly catching up with the market and transferring their assets to bitcoin. They may have done that many times before.
Look at Venezuela, look at Ethiopia or Thailand, these are the countries that devalued their national currencies. The business goes bankrupt for one night or weeks. That is terrible, even countries are diversifying their foreign currency reserves.
In the future, it's not just businesses that will hoard bitcoins, and maybe a few countries will turn to bitcoin.
Bitcoin is highly liquid and influential and liquid globally.
Look at Venezuela, look at Ethiopia or Thailand, these are the countries that devalued their national currencies. The business goes bankrupt for one night or weeks. That is terrible, even countries are diversifying their foreign currency reserves.
In the future, it's not just businesses that will hoard bitcoins, and maybe a few countries will turn to bitcoin.
Bitcoin is highly liquid and influential and liquid globally.
September 18, 2020, 05:11:55 PM
Check this out, Twitter CEO might be diversifying company stocks into bitcoin to save them from losing money due to the covid effects on the world markets.
Twitter CEO Jack Dorsey Might Allocate Some Corporate $10 Bln into Bitcoin: Willy Woo.
Quote
Prominent trader and entrepreneur Willy Woo has hinted that the head of Twitter, Jack Dorsey—who has $10 bln in corporate funds under his control—just might allocate part of that mammoth-sized amount to acquire Bitcoin in the near future to prevent this money from losing value.
September 18, 2020, 04:54:30 PM
Every big company has a financial advisor, surely big companies decide to invest in Bitcoin for a reason. It is impossible for big companies
to make decisions without careful calculation and consideration. Those who are starting to be interested in Bitcoin will definitely see Bitcoin's
performance is quite good compared to investing in stocks, because investing in stocks that are affected by the current pandemic situation.
This is very good news for the crypto community with big companies starting to invest in Bitcoin, hopefully this can increase the trust of many
people. And there could be mass adoption of Bitcoin as expected.
to make decisions without careful calculation and consideration. Those who are starting to be interested in Bitcoin will definitely see Bitcoin's
performance is quite good compared to investing in stocks, because investing in stocks that are affected by the current pandemic situation.
This is very good news for the crypto community with big companies starting to invest in Bitcoin, hopefully this can increase the trust of many
people. And there could be mass adoption of Bitcoin as expected.
September 18, 2020, 04:23:36 PM
Globalization is turning the world so small and in this digital world, digital system is much more needed. big companies know what is benefited for them. That's why they are investing on bitcoin.
There is a belief that make them decide to invest in bitcoin and it could be a good start for the company or it could be a disaster in the end. Every company that has high asset must pay attention to the volatility of bitcoin price, where the price always change according to market trend. I am not really sure if they will be able to survive when price fall or whether they should secure capital. But investing that much in bitcoin can increase the financial risk of companies looking to place their money safely in addition to bank and other asset. 
September 18, 2020, 01:57:42 PM
Globalization is turning the world so small and in this digital world, digital system is much more needed. big companies know what is benefited for them. That's why they are investing on bitcoin.
September 18, 2020, 01:18:01 PM
When you think, using "safe asset" word for Bitcoin could be strange. In the end, Bitcoin is volatile and fiat money isn't. However, fiat money can always be manipulated easily or go down in value while an economic crisis. But there is no such thing that a government etc. can control Bitcoin. In an economic crisis, Bitcoin will be better choice compared to fiat money.
Volatile doesn't mean unsafe. Bitcoin has a history of sudden moves but these moves matter only for those who want immediate access to the money.
If you are thinking of storing value for a long time like people do in government bonds you don't need fast access and can ignore short-term crashes and pumps.
September 18, 2020, 01:02:26 PM
Bitcoin is the most risky asset from the safest list, heh
Huh ? Risky and safe at the same time ? You mean to say people think that btc is safe or in other words legit because they think that its not going to scammed them but safe in a way that their money will not fall , well they got it wrong . Bitcoin is risky not in a way that it can burst like a real bubble but it's only risky because it's value is verry unstable . Those new companies who joined the alliance of crypto are a new addition to the past and existing companies that already invest in cryptos . That's nice because we are growing September 18, 2020, 12:54:05 PM
I wouldn't consider Bitcoin a safe asset to be honest. Although it has gained for more days than it has lost, it is also prone to extremely erratic price swings that can absolutely tank a portfolio.
Most companies aren't willing to risk losing more than 20% in a week, as is commonplace with Bitcoin's erratic swings. Remember, these people are answerable to their community and their investors.
If their investors see they've just last 20% in a week, even if it is part of a longer-term strategy, they will almost certainly vote to sell the asset and actualize their losses. Most investors don't understand crypto, and don't understand its long-term potential.
Most companies aren't willing to risk losing more than 20% in a week, as is commonplace with Bitcoin's erratic swings. Remember, these people are answerable to their community and their investors.
If their investors see they've just last 20% in a week, even if it is part of a longer-term strategy, they will almost certainly vote to sell the asset and actualize their losses. Most investors don't understand crypto, and don't understand its long-term potential.
September 18, 2020, 12:44:37 PM
As we already know that Bitcoin us an avenue to invest money that is not in use for a particular period of time, so therefore, companies can invest in Bitcoin to save money that they don't intend to spend aside from running capital and concurrent capital in order to keep the company running and to avoid bankruptcy.
Good to see even the companies have started adopting or investing in bitcoin during this time and may be this number will continue to grow. Only thing I fear if at a point of time all this companies or few if they happen to sell together then it will be a huge chaos in the market as will drastically fall and then to add more panic sellers will also come into picture.
September 18, 2020, 12:44:09 PM
I am sure that many of them hide the fact that they invest in crypto. This is plan b, after all.
When were talking about big public companies, they can't. Since most of these companies has investors, they'd have to publicize their financials, and their investors definitely deserve to know if a certain company they've invested in made a speculative bet.
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