As of October 2020, analysis shows that institutional investors have begun to store large amounts of bitcoin as their reserve currency. Some of the most popular tech giants involved in this include MicroStrategy, HUT 8 mining, Grayscale, amongst other financial and tech heavyweights.
Among these groups, the most prominent investor is Grayscale holdings. Grayscale has over $4.9 Billon representing 2.1% of the total available bitcoin. The CEO, Barry Silbert, said this ”now is the perfect time to invest in bitcoin and the company will continue to enhance its assets in the crypto portfolio”.
In general, these four institutional investors have bitcoins worth 6.8Billion dollars, representing 2.85% available bitcoin supply worldwide.
Another tech company on the list is MicroStrategy; they now have $425million in assets under management. The company is even moving to acquire more bitcoin as an alternate reserve currency.
Another popular tech giant that has bitcoin as their gold bar is Square. The Square invested 1% of their worth in bitcoin assets. The equivalent is 50million US dollars, and Square CEO Ahuja Amrita recognized that trading and investing in bitcoin is a wise thing to do because the financial world is now leaning towards the digital currency, making it fairer and valuable.
Why are industries taking this step?
According to Analyst Willy Woo, private and retail investors have started the accumulation of bitcoin since 2018. The recent developments and a tilt towards a cashless society is another contributing factor.
Prominent and not-so prominent Investors are accumulating bitcoin, and most are doing this in anticipation of a new Bull Run.
Coinshares Limited in the U.K has also started bitcoin-based investment. They now have 0.33% in reserves, and this is valued at 790million USD. The Coinshares group has over 1 Billion dollars of digital assets, but bitcoin makes up nearly 80% of these digital assets.
They suffered some drawbacks when the U.K banned the sale of ETNs, which are the traded notes used by Coinshares. Even with this setback, Coinshares didn’t relent and is still very optimistic in their digital reserve.
Other tech giants that have adopted the bitcoin reserve are Argo blockchain, Toronto Stock Exchange, and Riot Blockchain. These business giants have hundreds of millions of dollars in reserve and are still making plans to improve this digital asset accumulation.
Vogar Digital, DigitalX, and Cypherpunk Holdings also list as public companies that have started holding bitcoins as a reserve currency.
These tech/business giants have also started accepting bitcoin as a mode of payment:
Before now, many companies didn’t see bitcoin as a future. Well, you don’t have to blame because they were careful and cautious. Bitcoin isn’t the first digital currency that has existed. Some other digital currencies came and left, and some even didn’t make the limelight before going into oblivion.
Over 160 global companies now accept bitcoin as a mode of financial transactions, savings options, or other monetary dealings option. I think they have now understood that bitcoin is here to stay, rule, and dominate the economic digital world.
For the past few years, bitcoin has gained popularity, strength, weight, and expert recognition. Investors, retailers, and all businesses now want to associate with this triumphant digital currency.
Bitcoin can transfer money in a transparent and censorship-resistant way. These companies also know this; that’s why they have given it much attention and considerations.
The major global companies that accept bitcoin as a means of services, products, and reserve include but not limited to:
Microsoft, Overstock, Newegg, Purse, Namecheap, Hosterbox, Wikipedia, CheapAir, Gyft, BMW, Express VPN, AT&T, Etsy, Shopify, Rakuten, and so many others too numerous to mention.
Businesses and people have been clamoring for a universally accepted currency, which allows fast transfer, negligible fees, and flexible trading. So far, bitcoin became the answer to this clamor, and that is why businesses, investors, and individuals have embraced it as a good option.
Many companies started using it as a gold-bar but even many more companies now accept bitcoin as payment or repayment.
These companies that now accept bitcoin know the value of having such a heavyweight digital backup, and these companies or businesses have continued to grow even when others are dwindling. In today’s world, any establishment that lacks in digitalism ultimately goes into obsolesce.
Investors, tech giants, industries, and public sectors have been busy hoarding bitcoin and other cryptocurrencies; this will give you a clear insight that this digital world currency has come to stay.
Also, looking at the recent changes, you will understand that all sectors of essential and non-essential human needs now accept bitcoin as a mode of transaction. Even as of now, 2019, one can comfortably live with only bitcoin transactions. Things changed drastically, and it was for the better because the easiness, transparency, and value of this currency are something we have never seen before.
Who wouldn’t want to associate with such a fantastic way of life?
Soon bitcoin will become a way of life because all the smart companies have either started hoarding or have started allowing its usage. With over 160 global companies accepting bitcoin as products and services, you now understand the value and why many tech giants accumulate it as their new gold-bar.
Tech giants, telecoms, top public companies, institutions, and smaller businesses started adopting bitcoin as their reserve because institutionalized approval classified bitcoin as a mature, good, and safe-haven asset. The important stamp of institutional approval tested and saw bitcoin as the top crypto credential hence the need to use it as a reserve.
Some of these American technology firms started using bitcoin as their primary reserve asset because they want to hedge against fiat inflation or other possible damages that affect other reserves.
As of now, 13 Companies have bitcoin as their primary treasure reserve, and all these companies have over 598 237 BTC, that’s 2.85% of the total BTC supply.
They just started, and they accumulated so much within this short timeframe; imagine what will happen soon. The Bull Run will be adamant and exciting. It will favor everyone who has considered crypto as an option.
The Expert Predictions:
Looking at the recent digital currency happenings, you will now understand why economic analysts made two bold predictions. The predictions are 1. Crypto (bitcoin) is forthcoming institutional money and will enter the market like that in due time.
2. Blockchain will soon become the alternative conventional currencies.
Looking at the outlook, Harvard University Professor of Economics and Public Policy, ‘Kenneth Rogoff’ suggests that the overwhelming sentiment crypto receives could explode over the next five years; it could explode to 5-10 trillion USD in the next five years.
Yes, Physical gold is not very venerable to bubble-like collapse when compared to bitcoin. Bitcoin’s decentralization and transaction anonymity gives it more uniqueness, pros than cons.
In conclusion, several known and unknown tech giants have started hoarding bitcoin as their new gold-bar; this is not something to ignore. For these experts to invest heavily in this, everyone needs to rethink because the future is harvested by those planted during the rainy reason.
Even with these changes, has bitcoin become flawless?
Bitcoin is not without a fault, but its flaws can be erased with a computer crash. Also, the hacking problems can be erased with technological advances; hence the limitations have foreseeable solutions. As more people become technologically adept, bitcoin will continue to grow.
A conventional currency is comfortable for most people due to its simplicity, but with time, these simplicities will also be incorporated in digital currencies. At least the Libra coin is a good example of what could happen shortly. As these global tech giants keep investing and hoarding these precious coins, don’t look away because you might benefit immensely from their insights and attitudes; after all, this is what makes them giants.