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The Wall Street Company that Used $250Million to buy BTC

Wallstreet and bitcoin

September 24, 2020 | 

1021 Views | 

JOHN K MWANIKI | 

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The Nasdaq-listed company, MicroStrategy Inc, has bought over 2000 Bitcoin. The move has made cryptocurrency its largest reserve. The deal is worth $250 million, inclusive of fees and expenses.

The CEO, Michael Taylor, announced this during the release of the second-quarter financial results. He said the company is looking to find a hedge against inflation. 

The announcement is a result of months of long sustained discussions. MicroStrategy settled on Bitcoin due to its superiority to cash as a reserve. 

Fiat currency has faced imminent devaluation from the effects of the COVID. It's been so bad, some countries even are rethinking the use of the Dollar as a reserve

How Effective is the MicroStrategy deal? 

The CEO gave a detailed statement on what the deal means for the company. He reiterated his belief in Bitcoin as the world's most adopted cryptocurrency. The currency has proven to be a valuable store with potential appreciation. 
Bitcoin has become a useful asset to several entities. It has grown in value to take over from cash as the most valuable asset.

MicroStrategy has observed the current and future market movements. It bases its capital allocation strategy on the underlying economic and business landscape. 

Bitcoin, for now, seems the most secure asset. This follows the impact of the coronavirus pandemic on the traditional stock market. It is dire. The economy currently relying on the government's fiscal stimulus package

Bitcoin has, however, been on a sustained value appreciation run. It had an earlier decline scare only to recover as fast. It has traded some of the highest in the period. It has also beaten some of its historical resistance levels. 

The gains over the stressful economy have made the virtual currency the best alternative asset. Traders are looking to it as a safe haven. 

Bitcoin is an excellent alternative due to its decentralized nature. It does not rely on any single authority. It also has no physical backing. It derives its value depending on the underlying market forces. 

The coin comes with market management tools like the Bitcoin halving. This comes with the assurance of supply and price control. 

All these make Bitcoin harder, stronger, and smarter compared to the fiat. It has also increased the demand for the coin due to assured appreciation. 

Bitcoin also comes with the potential for return on investments. MicroStrategy looks into the global acceptance of Bitcoin. The coin has ecosystem vitality, architectural resilience, community ethos, and technical utility. 

These features make it the most viable asset for long-term investment.

What are the Expert's Views on the MicroStrategy Bitcoin adoption?

Bitcoin experts play an integral role in the Bitcoin economy. They analyze all the market moves, circulation, and possible outcomes. It is only natural that they weighed in the buying of Bitcoin by MicroStrategy.

Most of the experts believe the move is a business masterstroke for MicroStrategy. Blockwork's group Jason Yanowitz believes in the significance of the strategy. He thinks every public company will follow suit.

The Investor's Podcast Network's Preston Pysh sees businesses embracing Bitcoin. He believes it's the next viable investment strategy. He also believes the age of firms owning Bitcoin has picked up. That other company will take in the commodity.

Still, some investors don't consider the move worthy. One of these is the Founder magazine writer, David Z Morris. He acknowledges the existing Bitcoin's bullish run. Still, he doesn't believe it will attract more investors. 

He claims several stakeholders disapprove of Bitcoin. They are likely to bail from the company after the move.

MicroStrategy's move is one of a kind. It will keep drawing varying opinions moving into the future.

MicroStrategy Investment Strategy 

MicroStrategy is the biggest listed intelligence company in the world. The company has been the leader in anticipating market trends. It has been a pioneer in business intelligence adoption. 

It used analytics and web and mobile intelligence before any other company. 

The company ushered in the mobile wave in 2012. The period came with a rise in tech companies like Apple, Amazon, Facebook, and Google. It now believes the world is entering the virtual wave. The trend is digital, with cryptocurrencies becoming integral.

Businesses have to reflect on current trends. The new wave has digital currency as the main store of value.

Is this the beginning of traditional companies joining the crypto world? 

The entry of MicroStrategy is a unique investment. It differs from the traditional stock market. Conventional and fiat economies are facing possible elimination. The economy is revolving within the assets and investment acquisition. 

This is not the first time a company is looking at the cryptos way. Coca-Cola company declared interest in working with the Ethereum supply chain. 

Companies that had earlier opposed Bitcoin are changing tune. Several hedge funds and traditional banking system discouraged the uptake of the coin. They now seem to be of different views. 

One of the notable companies is Goldman Sachs. It has had mixed feelings towards Bitcoin. It earlier accepted Bitcoin only to reject it after some time. It claimed the coin was not valuable and discouraged investors from taking it. 

Goldman Sachs is now supporting the currency. Most of the other traditional banks have Bitcoin in their exchange. 

Notable investors have also embraced Bitcoin. Warren Buffet had, at one time, claimed the coin is a rat poison squared. He has since apologized and claimed its legitimacy.

The only concern is how long it might take the other companies to join. 

Bottom Line 

The move to get Bitcoin by MicroStrategy as its primary reserve is a new trend in the market. Most companies are likely to follow as consumers move online. MicroStrategy has a history of hits on investments. The move is an indicator of better days ahead for both coin and company. 

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Philip Gabriel  Welcome to Cryptocurrency , I’m duane juane . I’m a bitcoin trader and the time I’m writing this blog I can’t find a single review about many bitcoin trading signal services and companies. I have lost lots of money testing them for over an year. I don’t   1 year ago from Nigeria

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