Square-buys-50-million-in-bitcoin...
https://www.coindesk.com/square-buys-50m-in-bitcoin
This news is being reported by everyone.
I saw a dozen different articles in my crypto news feed. Jack Dorsey of Square is now following in the wake of MicroStrategy and adding Bitcoin to the company reserves (targeting 1%).
Now, many might think this isn't a big deal.
$50M is a lot less than the $425M MicroStrategy acquired, and the price of Bitcoin is still fledgling along in the $10k range.
Branding Matters
MicroStrategy is a no-name company with niche branding. Their purchase has gone largely unnoticed by the world. However, when you have a company like SQUARE dropping 50 mill on Bitcoin and CNBC is reporting it, this is a huge deal. Everyone is going to notice.
The market is still trading in EXTREME fear, so this news has no effect on price. However, how many more times does this have to happen before all of the FOMO hits the market all at once in a perfect storm? We've seen this go down time and time again. Fundamentals & Speculation are totally separate until the stars align and big-money players start taking huge risks.
These are not weak hands.
Think MicroStrategy is a weak-hand that might get scared and dump? What about Square? These are the definition of strong-hands. These are professionals, analytical and unemotional. These people are fully willing to take a huge loss knowing those gains will return just like they always do. These are clearly long-term plays and these companies have no intention of gambling on the market. They are programmed to HODL. It's not about timing the market, it's about time in the market.
I can't believe this is happening so fast.
This is truly an unbelievable moment in history. If all this COVID nonsense wasn't going down the Bitcoin FOMO probably would have already started by now. Bitcoin has never been worth more than it is right now.
I wrote this a year ago when speculation was looking pretty sexy (ended up spiking to $13k for summer Bakkt pump/dump). Today Bitcoin speculation is looking magnitudes better than it was back then.
The banking system is on the brink of collapse. Interest rates negative. Threat of bail-ins. Trillions being printed. Velocity of money at all time lows. The writing is on the wall, but the vast majority of the world digs a hole in the sand and chooses to bury their heads instead. LALALALALA I'm not listening!
Conclusion
This is a frightening moment in history. Corporations are signaling to the world that the legacy economy is so broken that they'd rather gamble their precious reserves on one of the most risk-on assets in existence rather than park their hard-earned value in fiat. This is hugely telling coming from organizations whose sole purpose is to make more money and insure their ongoing success into the future.
Companies that do not hold Bitcoin reserves (or enter during the mega-bull run of 2021) are going to find themselves up Shit's Creek without a paddle.
This.
Stack Satoshis any way you can. Use a hardware wallet, GBTC if you must, SWAP.BTC, freaking paper wallets. Just keep stacking.
Poor people aren't even going to know what Bitcoin is.
What's a Bitcoin?
How many sats does it cost?
This! (@preparedwombat beat me to it haha)
Really for a while now, it's been more of a risk to not have exposure to Bitcoin, than to have it. Corporations know that it's reckless to have cash on hand in today's economic climate. They're not fools.
It just needed someone to start and Square has done it. I mean if your competitor is moving 1% of their cash into BTC, shouldn't you at least match it? $50 mil, $100 mil, $500 mil as more and more join in.
It starts to add up and domino pretty quick.
The penny is about a centimetre from the ground.
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Like your viewing angle of the news. Plebs are only eye ing the purchase itself and Dorsey,s tweet making ETH holders poor folks that will remain poor. It's the whole picture that is essential these times. World current economies are close to obsolete and although BTC and crypto in general are still risky assets for the majority their status will end quite soon. Printing money endessly that are basically backed by nothing will not go on forever.
I guess that little bump earlier today had something to do with it (apologies, it's in the Queen's currency)? I'm still dollar cost averaging and just weekly adding to the BTC "forever HODL".
This is true, but this "bump" hasn't even broken the very-narrow resistance line. The doubling curve will be around $12k at the end of the month, so even if it "spikes" to $12k I still think it's trading at the absolute baseline and not overbought in the least.
Oh yeah, still not really much of an impact on the zoomed out view but great that it's getting reported on a major news channel (I guess CNBC is a big news channel in US?)
The Consumer News and Business Channel is pretty mainstream as far as financial matters are concerned.
Stilly pretty dry for the average person.
Think you've described one of my exes there heyoooo
Easy there Ben Shapiro.
Might be making large purchases of bitcoin now — assuming it's cheap — in order to be better prepared to purchase or create alt coins in the future that might be necessary for development plans down the road.
I agree that these are significant buys and part of a trend. The writing is on the wall. Time to move out of ETH Inyo BTC
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The funny thing is that Bitcoin can't outperform smaller market caps during mega-bull runs. Not even close. Still, Bitcoin is the safest bet with huge returns. Even after going x20 it will still only lose 80% after that... not 99% like coins such as Hive that just went x100.
I'm prepared. Long ago.
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Printing gobs of virtual fiat with no end in sight tends to scare wealth away. Capital likes to be preserved. Luckily Bitcoin provides a safe haven for scared money.
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could be exciting times. seat-belts on.
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Makes a lot of sense... if you consider how much the fiat money presses are printing, and the controlled quantity of BTC, then the smart money would move towards investments that have a known quantity.
=^..^=
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You and me are noticing. :) This is just the beginning of companies adding bitcoin to their balance sheet. Their shareholders will start demanding it...
Square has more money that it can invest in BTC. Do not be surprised if they do something like this on a monthly basis.
Plus, when you think about corporations, both of these are micro companies. Can you imagine the amount of Bitcoin Apple or Wal-Mart could buy if they wanted? Apple is sitting on a couple hundred billion and I wouldn't be surprised if Wallyworld is near that.
They could be hundreds of millions of BTC and not even think about it.
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True
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Yeah it's a truly mindblowing thought.
Many of the corporations that FOMO in at the peak of the next run are going to lose 80% of what they put in... I wonder how many will be so overextended they go bankrupt. I imagine a lot of retail investors are going to get burned by stronger hands.
Everybody's talking about it! I wish that I had some of that fiat to turn into crypto, though.
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They bury their heads in the sand because the truth that the legacy economy is about to be replaced by a new paradigm is deeply unsettling.
The world is changing faster than we all can even blink.
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