The biggest news for BTC this year is something that no one's really talking about...

in #hive-16792215 days ago

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The biggest news of the year is probably not the news that you think it was...

Sure we had some good news for bitcoin and crypto this year.

We had the rise of defi, we had the massive central bank money printing globally, and we had the comptroller of the currency in the US say that federally chartered banks could hold bitcoin.

All great news.

However, there was one development that I think may end up being bigger than all of those as we go forward.

And that news is continuing to develop to this day...

What am I talking about you may be wondering?

I'm talking about Microstrategy announcing they were investing $250 million of their cash reserves into bitcoin due to concerns about inflation and low yields.

More on that can be seen here:

https://hive.blog/hive-167922/@jrcornel/possible-watershed-moment-for-bitcoin-as-microstrategy-swaps-fiat-for-bitcoin-as-company-s-reserve-asset

https://hive.blog/hive-167922/@jrcornel/another-business-opts-to-convert-cash-reserves-into-btc

https://hive.blog/hive-167922/@jrcornel/another-company-adds-bitcoin-as-reserve-asset-to-corporate-balance-sheet

And then today, news broke that they have filed with the SEC announcing that they may go ahead and add more to that position...

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(Source: https://www.sec.gov/Archives/edgar/data/1050446/000119312520244732/d937119d8k.htm)

Why does this matter?

I'm glad you asked!

This matters bigly for a couple reasons.

The first and most obvious reason is that no one expected fortune 500 companies to major bitcoin investors, at least I didn't.

I fully expected pensions, endowment funds, family offices, private equity funds, etc etc etc to all be the major players as far as institutions are concerned.

However, I never expected large tech companies, are should I just say large companies as there are already other non tech companies showing interest in doing the same thing.

The second reason that this is a big deal is because it basicially makes turns Microstrategy into a quasi bitcoin fund.

There are currently no US approved bitcoin ETFs.

Microstrategy with $250 million already invested, is basically turning itself into one.

This has lead to investors buying up the stock when the news broke and I am sure other companies out there looking to boost their stock price have noticed.

I think this trend is going to continue into the coming months and will only intensify if the price of bitcoin starts really going up.

The future looks very bright for bitcoin and crypto.

Stay informed my friends.

Image Source:

https://www.coindesk.com/microstrategy-more-bitcoin-sec?__twitter_impression=true

-Doc

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Thank you very much just sharing with us. I am learning a lot. I have question, as a little player, what your recomendation to me about crypto, what crypto have big chance and opportunity on 2021 ?

HIVE

I don't mess with many altcoins to be honest, only a handful. I like bitcoin because I think it is too embedded globally at this point to fail. So, when you have something not likely to fail and has 10-20x potential over the coming years, it sounds like a pretty great investment to me, even if some altcoins blow by it in percentage terms.

Absolutely. BTC is THE blue chip of crypto. No doubt. And from that point on it's really a question of individual investor risk tolerance. The altcoins are more speculative, again, without a doubt, but if one is looking to spice up a small percentage of their portfolio, there are some very solid 'alts', some that will someday be blue chips too. But again, I think your assessment is spot on.

If you have to ask you should be buying Bitcoin only till you know better.
I wish I had told myself that 3 years ago.

There is a funny trend that seems to happen in crypto investing and it happened with me as well. First you get into crypto, and you are a big bitcoin fan, then you learn more about crypto and you decide that eventually an altcoin is going to replace it due to superior tech. However, then you do even more research and all your research leads you back to believing that bitcoin is king and is most likely to be king going forward. It starts and ends with bitcoin. It's on a completely different level than everything else.

Pretty much exactly that. Once we figure out Bitcoin, it becomes the boring Grandpa of the pack. Respect your elders.

Also I need a new mouse because it randomly double-clicks on a single click, giving random people 100% upvotes :D

I disagree, I think the mouse is functioning just fine! I need to make sure to reply to more of your comments! :)

okay 😁

spot on, get btc and start learning

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Yesterday, Microstrat bought nearly 17000 more BTC!!!
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Wow! Thanks for sharing!

That is really interesting. A company positioning itself as a defacto Bitcoin ETF. A clever idea indeed.

It sure has helped their stock price as well.

The revolutionary idea is that every big company will in the future have to buy bitcoin, because they will get outpaced (in terms of growth and stock performance) if they don't. Let that sink in for a minute.
Some smaller multi million dollar company suddenly being bigger than Microsoft or Apple, because they invested in BTC before 20k...

Holy shit this could turn everything upside down and bring valuations beyond 10million per BTC...

Haha I wouldn't go that far just yet, lets get to new highs first. :)

That being said I think you are right about a financial race being set off. Angry shareholders are going to force companies to get involved even if they didn't want to if bitcoin keeps going up...

Love the heading under the title: MicroStrategy is refusing to rule out future bitcoin gambles..

Gambles?

BTC is so bullish they're using scare tactics to try and keep price down!

To those that haven't gone down the rabbit hole yet, it looks like a gamble still. For those that spend even a few hours really looking into it's history know that since it was created it has only trended from the lower left to the upper right, hardly a gamble.

Absolutely. You're right. Surprising to see that from CoinDesk.

It's hard to imagine, but it's happening...

Hey Bill, I think we need to put some Bitcoin on the books.
Our stock holders are demanding it.

So even if the Bitcoin buy is initially a bad investment the price of their stock could still go up. Even though they lost on the first gamble they can still win on the second. So weird.

This kind of synergy may get out of control.

Yep exactly. I'd have to check the timelines, but it's possible they already made up in stock price what they spent on btc... it's a win win situation for them at this point.