Topic: Big companies have started investing in bitcoin as a safe asset (Read 647 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, 08:00:02 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, 06:01:07 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, 04:21:34 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, 04:07:48 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, 06:57:50 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, 04:44:25 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, 01:38:47 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, 09:27:00 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, 04:35:31 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, 07:47:17 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, 04:11:55 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, 03:54:30 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, 03:23:36 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, 12:57:42 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, 12:18:01 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, 12:02:26 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, 11:54:05 AM
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, 11:44:37 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.
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, 11:44:09 AM
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.
September 18, 2020, 11:34:20 AM
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, 11:31:10 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.
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, 11:26:15 AM
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, 10:43:39 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, 10:36:12 AM
Bitcoin is the most risky asset from the safest list, heh
September 18, 2020, 10:30:52 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, 09:41:28 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, 06:53:29 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, 06:50:07 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, 05:37:15 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, 05:26:09 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, 12:49:31 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, 12:46:32 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 17, 2020, 11:20:48 PM
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, 10:51:46 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, 10:04:00 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, 09:49:48 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, 09:09:22 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, 09:05:41 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, 08:38:42 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.
September 17, 2020, 08:17:48 PM
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.
September 17, 2020, 06:46:02 PM
What do you think?
Bitcoin is good but wont really be considered on the good side when it comes to safe asset.We know the market is too volatile and for now they cant tell about it since the market had been moving sideways
but when the price plummets down on at least on 7-8k range then that where regrets and blaming time would occur.They shouldnt have make this as an option even though im a pro bitcoiner but
on traditional business specially on the cash reserves talks then putting it on crypto is really a very very risky thing since everything can turn out to zero.
September 17, 2020, 06:38:15 PM
They must be the entity that's buying Bitcoin, when it was around $10,000. But its certainly a good move to diversify your portfolio, we'll never know what might happen to the stock market, and we've seen Oil fallen down to negative territory. Now is probably a good time to accumulate Bitcoin before a big financial crisis happens. Similarly, other big businesses such as a restaurant in Canada that has thousands of branches, transitioned to BTC also to the fear of an economic collapse.
September 17, 2020, 06:37:12 PM
I believe bitcoin is not to be considered safe asset. You can't tell if one day, you still have the same value as what you invested today. But that's the point in investing in btc, right? We are hoping that in the future it will increase and so our investments will grow big. But of course, the possibility of going down is always there, we just hope it is in the positive direction. But all in all, I don't think btc as a safe asset.
September 17, 2020, 06:32:07 PM
Needless to say, with that huge amount of money involved, for sure they did their risk analysis assessment.
So if they still pushed thru with their investments in bitcoin, it means they have high regards with crypto.
They won't take this big risk if they know they are on the losing end.
And I believe a lot of companies are also privately accumulating their own crypto stash. Who knows, right?
I also believe that a large company like Microstrartegy Inc has already done a risk analysis before deciding to start investing in bitcoin. Companies in their class will not enter bitcoin without prior preparation. This investment has been planned with various bitcoin risks that they must face. Bitcoin can not be said to be a safe asset, because the risk of investing in bitcoin is very high compared to investing in other assets such as bitcoin or crypto. The prices are very volatile and the regulations provided by their government will certainly be tighter.So if they still pushed thru with their investments in bitcoin, it means they have high regards with crypto.
They won't take this big risk if they know they are on the losing end.
And I believe a lot of companies are also privately accumulating their own crypto stash. Who knows, right?
Bitcoin is a future asset that can be profitable if managed properly and several other large companies have also started investing in bitcoin and started adopting bitcoin as an optional payment platform.
September 17, 2020, 06:24:37 PM
It would be cool if other investors are also cool with it. This is literally banking on the possibility of bitcoin retaining its value for a long time and not going below a certain threshold and putting a significant value on the line. Normally I would advice against it given bitcoin's volatility and its susceptibility of being dumped on but then again this isn't something I own that I have control with. I just hope the best for their company since this is a high-risk, high-reward move, so they can still cut losses--minimal losses compared to holding on fiat--in the end.
September 17, 2020, 06:11:19 PM
Making Bitcoin a safe asset is possible, but this is very risky. Moreover, as we know, Bitcoin is very volatile. If indeed this is used for long-term investment, it might become a safe asset, but with various risks.
Have they thought it through? Around the negative and positive impacts of making Bitcoin a safe asset? If this has actually happened, and especially by large and well-known companies, then it is possible that Bitcoin will quickly become a bigger asset again and again.
Have they thought it through? Around the negative and positive impacts of making Bitcoin a safe asset? If this has actually happened, and especially by large and well-known companies, then it is possible that Bitcoin will quickly become a bigger asset again and again.
Needless to say, with that huge amount of money involved, for sure they did their risk analysis assessment.
So if they still pushed thru with their investments in bitcoin, it means they have high regards with crypto.
They won't take this big risk if they know they are on the losing end.
And I believe a lot of companies are also privately accumulating their own crypto stash. Who knows, right?
September 17, 2020, 06:05:37 PM
Making Bitcoin a safe asset is possible, but this is very risky. Moreover, as we know, Bitcoin is very volatile. If indeed this is used for long-term investment, it might become a safe asset, but with various risks.
Have they thought it through? Around the negative and positive impacts of making Bitcoin a safe asset? If this has actually happened, and especially by large and well-known companies, then it is possible that Bitcoin will quickly become a bigger asset again and again.
Have they thought it through? Around the negative and positive impacts of making Bitcoin a safe asset? If this has actually happened, and especially by large and well-known companies, then it is possible that Bitcoin will quickly become a bigger asset again and again.
September 17, 2020, 05:46:27 PM
This means that they think about a possible huge adoption in the coming years, they'll probably see it. Not in a way that they are accumulating Bitcoin now as for a safe asset but they are doing this because they were able to think that Bitcoin will be the only currency to used (IMO). And that's they prepared while the price is still low because once it fully accepted globally, it is no doubt that the price may increase., doubled, tripled, or even more.
September 17, 2020, 03:04:51 PM
- Volatility is here to stay
Bitcoin is an ever evolving network which is only a couple of years old, while volatility has been a constant factor so far, that can change with time and adoption. The CEO of microstrategy, Michael Saylor, said in an interview that they plan on holding on to bitcoins for about 100 years; the current network would be markedly different from what we would have in a century. Also, if they plan on holding for that long, intermittent fluctuations in value would not have much of an effect on their decision as long as there is a tendency for growth.
Michael Saylor also specifically talked about the volatility in a podcast interview with Pompilano, his thoughts were shared in a tweet;
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.
$425 million was put into Bitcoin by a publicly traded company. There are lots of legal and technical hurdles that would have to be had been passed to make it possible. Getting the executives and directors on board to adopt Bitcoin as a reserve currency would have also been complicated - I would assume all the options, as well as the up and downsides would have been accounted for before they could hit the buy switch. September 17, 2020, 01:59:40 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.
September 17, 2020, 01:58:02 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. ~
September 17, 2020, 01:37:47 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 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?
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