Accumulate bitcoins, risky digital bet: This article explores the topic in depth.
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Accumulate bitcoins. Therefore, risky digital bet:
From Trump Media to Tesla, a growing number of companies relying massively on Bitcoin to diversify their reserves, counter inflation or attract investors. Meanwhile, A highly potential strategy, but at high risk in the face of the extreme volatility of cryptocurrencies.
Who is investing?
It is common for companies that have this cryptocurrency – the first in terms of capitalization – exercise an. Furthermore, activity related to it.
This is the case of companies which “undermine” bitcoins. Consequently, that is to say which participate in the process of validation of transactions in exchange for tokens.
But also. Similarly, to a certain extent, Tesla, who has accepted them as a means of payment, and Trump Media, centered around the American president, which should soon offer crypto investment products.
Other firms operated so far in very distant fields before accumulate bitcoins, risky digital bet starting to accumulate this currency. such as the Japanese Metaplanet, originally specialized in hotels.
The American company Strategy. which initially sold software under the name of microstrategy, now has more than 600,000 bitcoins, or more than 3% of all those ever issued.
Its co -founder Michael Saylor “created a real value for his first investors” by offering the possibility of investing in cryptocurrencies without having directly. at one time – five years ago – where current financial products related to the sector were not authorized, explains to AFP Andy Constan, director of the analysis firm Damped Spring Advisors.
What interest?
Companies can collect bitcoins “with a view to diversification” of their cash flow. to “counter the effects of inflation”, notes Eric Benoist, specialist in technologies for Natixis.
Other societies. in difficulty, surf the trend to “try to restore their image” by “leaning on an active perceived as solid and which accumulate bitcoins, risky digital bet is appreciated in time,” he notes.
Some. like Strategy, which focus on the accumulation of bitcoins, make it a real commercial strategy to attract investors attracted by the potential of this currency.
Bitcoins can also have a simple practical utility: the Coinbase exchange platform thus uses its own reserves as a. guarantee for its users.
What risks?
The value of Bitcoin has multiplied by about 10 in five years, recently benefiting from new American regulations.
But the motto “regularly knows colossal falls”. its volatility is four times higher than that of the main American stock market index, the S&P 500, according to Campbell Harvey, of the US University of Duke.
It is risky to “place very volatile assets. unrelated to its activity in its cash”, generally made up of secure securities as short-term obligations, “from which one must be able to draw in the event of an emergency,” he says.
accumulate bitcoins, risky digital bet
Purchases of big holders of cryptocurrencies, nicknamed “whales”, have helped to boost its price in recent years.
But according to the economist. these companies will not be able to “liquidate all these bitcoins at their current price”, which would fall in the event of a massive sale.
We should flood the market to move the course. retorts Jack Mallers, boss of Twenty One Capital, which claims $ 5 billion in Bitcoin.
“We are not afraid of” volatility, because “we keep long term”, he swears to AFP.
A bubble?
According to an internal indicator, the action of strategy is now sold around 70% above the value of its reserves.
The company – which has not responded to AFP – continues its growth by accumulating bitcoins. which attracts investors and propels its price upwards.
But ultimately, he will have to monetize these crypto assets, for example with financial products.
If the companies accumulate bitcoins, risky digital bet that accumulate bitcoin, more generally, do not succeed, Eric Benoist fears a burst of the bubble.
He recalls that these accumulation strategies go against the original philosophy of this currency. thought in 2008 as a decentralized means of payment.
Today, “Bitcoins end up in electronic safes that we do not touch”.
Accumulate bitcoins, risky digital bet
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