Topic: Big companies have started investing in bitcoin as a safe asset - page 2. (Read 552 times)
September 18, 2020, 12:34:20 PM
This is long back expected, but now with the prevailing economic downfall companies have come up with the plans of investing on cryptocurrency. I don't know whether it is true or not, long back itself large scale firms started to invest on cryptocurrencies indirectly as there is more legal framework required for investing.
September 18, 2020, 12:31:10 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.
If they wgovernment or big companies such as those managed or owned by many, having bitcoin can help them aslo shows transparency, at these time that the stock market is I still affected by the economy situation due to pandemic, the only asset that makes some investors earn is thru trading crypto. It may not be the safest assets but it is not really affected by the economy of the country that makes it safer to invest too when they know how to managed it well too. 
September 18, 2020, 12:26:15 PM
Behind is an abbreviated translation of my own post here in the Croatian section of the forum. https://bitcointalksearch.org/topic/velike-kompanije-su-pocele-investirati-u-bitcoin-kao-sigurnu-imovinu-5276508
I believe that the facts presented are of greater importance to the wider bitcoin community, so I decided to transfer my post here (in English).
The owner of one large firm (MicroStrategy Inc), worth more than $1 billion, the so-called "unicorn" decided, driven by inflation and uncertainty around the dollar and fiat currencies, to invest in bitcoins as a "safer investment."
He believes it is not safe for the company's cash reserves, about $500 million to keep in fiat and he has decided to invest that money in bitcoin.
According to the report, he bought a total of 38,250 Bitcoins at a purchase price of $425 million.
So something new has started here, and when this becomes a trend, and other companies also start investing in bitcoin as a "safe asset" I think we will see a sharp rise in the value of bitcoin and a drop in the value of fiat currencies.
You can see the full article here (in Croatian): https://crobitcoin.com/unicorn-kompanije-kupila-bitcoin-za-425m-dolara/?utm_source=email&utm_medium=newsletter&utm_campaign=news
What do you think?
I have mixed feelings. For one, I'm sure other companies invested in Bitcoin before, even if not such a big (for the company) amount of money. Another point is that I really don't think Bitcoin make a good safe asset. The price can crash, and then these investors will be devastated and will hate Bitcoin, but I'd say that Bitcoin is not for such purposes, so relying on its overall long-term stability or even growth was their fault. I think it's too risky to put half of what a company's worth into Bitcoin, and this could lead to terrible consequences both for companies that make this risky move and for Bitcoin when the money gets aggressively pulled out after some of such investors start losing money. I believe that the facts presented are of greater importance to the wider bitcoin community, so I decided to transfer my post here (in English).
The owner of one large firm (MicroStrategy Inc), worth more than $1 billion, the so-called "unicorn" decided, driven by inflation and uncertainty around the dollar and fiat currencies, to invest in bitcoins as a "safer investment."
He believes it is not safe for the company's cash reserves, about $500 million to keep in fiat and he has decided to invest that money in bitcoin.
According to the report, he bought a total of 38,250 Bitcoins at a purchase price of $425 million.
So something new has started here, and when this becomes a trend, and other companies also start investing in bitcoin as a "safe asset" I think we will see a sharp rise in the value of bitcoin and a drop in the value of fiat currencies.
You can see the full article here (in Croatian): https://crobitcoin.com/unicorn-kompanije-kupila-bitcoin-za-425m-dolara/?utm_source=email&utm_medium=newsletter&utm_campaign=news
What do you think?
September 18, 2020, 11:43:39 AM
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.
September 18, 2020, 11:36:12 AM
Bitcoin is the most risky asset from the safest list, heh
September 18, 2020, 11:30:52 AM
It looks like the number of people who believes in Bitcoin is continuing to increase. Although I find the word "safe asset" for Bitcoin not too related, I think Bitcoin is a very good choice in the long run. The profit amount could be very high compared to investing in fiat money.
September 18, 2020, 10:41:28 AM
This has pointed out that bitcoin has been accepted by all circles, I heard there are several firms/companies who start to buy bitcoin for investment purpose and it will give a good effect for bitcoin.
Bitcoin has a unique function, they can still it for payment system, sending money and an asset. Comparing to gold, bitcoin is more useful then it. So why, there will be many companies who will start to safe their money into bitcoin. Moreover with this crisis economic situation bitcoin can be made as an alternative to safe their money.
Bitcoin has a unique function, they can still it for payment system, sending money and an asset. Comparing to gold, bitcoin is more useful then it. So why, there will be many companies who will start to safe their money into bitcoin. Moreover with this crisis economic situation bitcoin can be made as an alternative to safe their money.
September 18, 2020, 07:53:29 AM
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.
In terms of a safe haven, we need to accept the fact that bitcoin is not the same as GOLD.
To secure your future, you need to invest in Gold because that's a long term asset and not volatile like bitcoin.
But some of the big companies are still investing in Gold as a safe haven because bitcoin is new to them. Bitcoin should be manipulated depending on the market and a sudden changes or spike in its price should be monitored so that you know when to make transactions. Maybe some companies thinks that bitcoin is one of the way to reduce the suffering from economic crisis.
September 18, 2020, 07:50:07 AM
Bitcoin can be an extremely profitable investment but I disagree about investing in bitcoin as a safe asset.
Everyone understands that investing in the crypto and bitcoin markets is a risky investment. You can see bitcoin go up to 20000 $ also see it drop to 1000 $ in just a short time.
Everyone understands that investing in the crypto and bitcoin markets is a risky investment. You can see bitcoin go up to 20000 $ also see it drop to 1000 $ in just a short time.
September 18, 2020, 06:37:15 AM
nowadays gold and bitcoin are new type of assest people are investing in
crypto currency is the future for new investment
crypto currency is the future for new investment
I have a friend who told me that he saw cryptocurrency as the new form of Stock exchange. I couldn't just believe him but that is also what I see since people don't really see the value of Bitcoin for peer to peer transaction but rather see Bitcoin as a safe haven for investment. Anyway, as long as I keep using Bitcoin, I am convinced that I also contribute to its development. With regards to this, there could be a possibility that big tech companies will create their own token instead of stock as cryptocurrencies are more accessible to people.
September 18, 2020, 06:26:09 AM
It's good to know that big companies are now investing in bitcoin but if they think bitcoin is a safe asset, I think they re wrong. First,they need to consider that bitcoin is volatile ,anytime their investment either increase or decrease. It's really good to invest in bitcoin ,no doubt it but we always think very well putting all money in bitcoin. Wht if government will suddenly ban bitcoin and crypto exchanges? It could be a big problem for every company that look at bitcoin as a safe asset.
September 18, 2020, 01:49:31 AM
This is old news, and initially there was many threads about this, so you can use the search function to read those discussions if you're interested.
My opinion, it's better not get hyped, this is just one company, and we don't see many other big companies following it. It's kinda reckless to think that Bitcoin is a safe heaven in case US dollar falls, because this idea has never been truly tested, so it's just a big bet. The whole idea is based on Bitcoin's scarcity, but scarcity alone is not a guarantee of value.
My opinion, it's better not get hyped, this is just one company, and we don't see many other big companies following it. It's kinda reckless to think that Bitcoin is a safe heaven in case US dollar falls, because this idea has never been truly tested, so it's just a big bet. The whole idea is based on Bitcoin's scarcity, but scarcity alone is not a guarantee of value.
September 18, 2020, 01:46:32 AM
But when it comes to a safe asset part , there is literally a lot of problems that one has to take into account.
- Volatility is here to stay
It always has been, but it has shown pretty positive growth, for the past year, plus, it isn't like the banks are actually in a good situation right now, so it's probably a better risk for them to actually invest in Bitcoin instead of letting it sit as a fiat. Besides, if this investment of theirs were to show growth, that's a big thing for them, but the same could be said vice versa. - Volatility is here to stay
Also it seems like they also did invest in the past? https://bitcointalksearch.org/topic/microstrategy-company-adopts-bitcoin-as-primary-treasury-reserve-asset-5268180 Looked around since the name MicroStrategy was quite familiar with me. So is it this, plus the amount said in the article OP said, or is the one from the OPs article a total of the Bitcoin they bought? Since if it was added, then it'd obviously exceed their cash reserves of $500m but if it was total, then it seems to add up properly.
As I understand from the article, $425 million is total amount of money they invested in btc.
September 18, 2020, 12:20:48 AM
That safe term is highly debatable, although compared to fiat which is inherently designed to really lose value over time, Bitcoin must be better. The problem, however, is that huge price fluctuations happen every now and then with Bitcoin. That does not happen with fiat.
This characteristic makes it harder for them to pull out anytime from Bitcoin. After a severe dip in prices, the recovery would sometimes take months.
This characteristic makes it harder for them to pull out anytime from Bitcoin. After a severe dip in prices, the recovery would sometimes take months.
September 17, 2020, 11:51:46 PM
Every single dollar of bitcoin's increase is total profit for them. They can sell at their own will anytime even if there are just a few dollars to hundreds of an increase in its price. I don't expect them to hold for too long if they have to need the money, they'll start to sell as long as they are on markup or profit.
I guess it's a company decision not just by the owner itself and as long as they know what they do, they shouldn't worry at all. If they've seen by other companies to make a profit from what they did, let's expect some companies will do the same.
I guess it's a company decision not just by the owner itself and as long as they know what they do, they shouldn't worry at all. If they've seen by other companies to make a profit from what they did, let's expect some companies will do the same.
September 17, 2020, 11:04:00 PM
Yeah the problem with that lots of money to invest in bitcoin is the volatility because when the price of the bitcoin fell in the market, that kind of investment will also fail bigtime. no matter how you define it, it's always been the norm of the crypto market. the only difference is when those companies invest at the right time when the price is low. then the possibilities of gain is high since bitcoin never failed us when its price fell it always rise and give a major comeback base on its past history throughout these years.
The thing is, how do we know if the current price(which is approximately around the pricepoint where MicroStrategy bought bitcoin at) is high or low? Only time will tell if now is the so called "right price" to buy or not because obviously we can't predict future price movements especially in the short term.
Also take note that these wall street guys are investors, not short-mid term traders.
September 17, 2020, 10:49:48 PM
Bitcoin is amazing - No doubt
But when it comes to a safe asset part , there is literally a lot of problems that one has to take into account.
- Volatility is here to stay
- The government regulations will only tighten with time
- If the government decides to ban bitcoins and other cryptocurrencies then the whole company might be in a bit of a problematic situation
etc..
Invest in Bitcoins, no doubt but to make an investment of millions and that too regarding the company I do think that's a bit of an overstatement.
But even the banks are in a tight spot therefore I do believe that there is no safe investment right now. ~
But when it comes to a safe asset part , there is literally a lot of problems that one has to take into account.
- Volatility is here to stay
- The government regulations will only tighten with time
- If the government decides to ban bitcoins and other cryptocurrencies then the whole company might be in a bit of a problematic situation
etc..
Invest in Bitcoins, no doubt but to make an investment of millions and that too regarding the company I do think that's a bit of an overstatement.
But even the banks are in a tight spot therefore I do believe that there is no safe investment right now. ~
Yeah the problem with that lots of money to invest in bitcoin is the volatility because when the price of the bitcoin fell in the market, that kind of investment will also fail bigtime. no matter how you define it, it's always been the norm of the crypto market. the only difference is when those companies invest at the right time when the price is low. then the possibilities of gain is high since bitcoin never failed us when its price fell it always rise and give a major comeback base on its past history throughout these years.
https://www.coindesk.com/price/bitcoin
September 17, 2020, 10:09:22 PM
I think the company should not call bitcoin as a safe haven because the bitcoin price is fluctuating. Maybe the company can suggest their employee invest in bitcoin, but their employee should know and learn before they start to invest. If the company really wants to have a safe asset, then gold will be the best choice because it is not too volatile as bitcoin.
September 17, 2020, 10:05:41 PM
I wish they really know the the place they are entering because the best and worst case might happen. I know that inflation was a tough opponent but volatility is tougher I guess so i don't understand why such companies like that choose to gamble. I think much better if they invest it with gold.
Anyway, I'm still glad that more and more are trusting bitcoin
. Maybe I'm just worrying that things might not flow smoothly that's why I'm acting like this. To cope withe the natural nature of crypto; they should not simply store it, they must learn to trade at least.
Anyway, I'm still glad that more and more are trusting bitcoin
. Maybe I'm just worrying that things might not flow smoothly that's why I'm acting like this. To cope withe the natural nature of crypto; they should not simply store it, they must learn to trade at least. September 17, 2020, 09:38:42 PM
Yes, institutions invest in Bitcoin to hedge their inflation risks and get exposure to a store of value, which is better than gold. Based on the Fidelity Digital Assets research conducted in 2020, more than 35% of the U.S. and European institutional investors have already invested in digital assets, while 25% of surveyed institutions have exposure to Bitcoin.
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