Bitcoin Forum

Still thinking about buying bitcoins later or waiting for the next bull run before you buy?
Well, be on the watch or you will miss the train  :D

Stone Ridge is just one of the latest public companies to come out and announce that they have invested some money in Bitcoin. As it has been seen with other companies that have already invested by buying huge amounts of Bitcoin such as Microstrategy Inc, Grayscale Bitcoin Trust, Square Inc. and many more. It's quite evident that the trend is growing as more players as starting to use bitcoin as a form of investment or asset to store value

According to coindesk (https://www.coindesk.com/nydig-raises-50-million)

What do you think about the current trend?
Will it help improve on how the rest of the world perceives about bitcoin?

It seems like they are gradually recognizing it and it wont be a shocking thing if the price of Bitcoin will shoot up on next months or on next year if this would continue where companies do consider out
on acquiring BTC but we know on whats the primary motive on such consideration but lets not talk that from now.The thing here is that they do recognize bitcoin as an option.
Its nothing new if they do treat it as an investment or store of value its up to them because neither way it do really fit out on such criteria.
Lets hope that there would be even more companies would do the same.

Well, crypto enthusiast will take this as positive news, as companies started to acquire before. But I have a feeling that it will started way back in 2017, prior to the boom and then continue during the bear market. It's that we really don't have the data as those companies wanted to keep it a secret, of course, for security reasons.

Maybe it could give more credibility to bitcoin per se, but we all know that there are still a lot of doubters there, so it doesn't really matter.

It will.

A company like them will give more idea to the people and create a question why they are buying this bitcoin if the media shows it as a currency for bad transactions.

There could have been a couple of companies doing that back then but it looks like there is more and more momentum lately if you check out bitcointreasuries.org Just 2 of them in 2018 and 2019 and Over a dozen of then in 2020

What I am excited about is the more bitcoins these companies buy, the less supply of bitcoins in the market. This coupled with increasing demand means only one thing, bullish trend  :)

So a new trend has been emerging, reserved assets for companies. So I'm guessing that it will have a net positive for bitcoin's image. But what we want to hear is top IT companies, who says that they are putting their asset on bitcoin as a reserves, I think it will bring more weight.

And these companies are banking that bitcoin will have its bull run next year, so it's better to join the bandwagon early because when it shoots up to $40k or even 6 digits in the future, their risk have paid off, instant profit for them. So we need more of them to somewhat push the price.

Just because a few companies decided to buy Bitcoin,that doesn't mean that a trend is created.
We should call this 'a trend',if more than 100 big and medium-sized companies buy BTC.
I respect every company and business owner,who decided to buy Bitcoins in this recession.
The global financial situation might get even worse in 2021,negative interest rates aren't stimulating the economy,so hoarding Bitcoins might not be a bad move at all.

"First they ignore us, then they laugh at us, then they fight us, then we win."

I'm not sure where this quote originally came from(but I remember reading it on Andreas Antonopoulos' book), but that quote is sure damn coming into play slowly but surely.

But what are "these players" doing to help the growth of the network, and its infrastructure? How can they protect and secure the future of "their investment".

Some of the real people in the trenches, who are actually hands-on developing Bitcoin, are not sufficiently supported.

https://twitter.com/lukedashjr/status/1316052973881966592

Why should the new players who are actually buying into bitcoin also be the ones to support the devs? Aren't they just the latest entrants? If this information (https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html) is even slightly correct, then the top 0.5% of addresses still own almost 85% of the coins.

People tagging the Micro Strategy guy sounds a bit like asking too much. Over the past 10 years, several individuals and businesses have been established based on bitcoin. They are not as publicly known as the public corporations joining in now so nobody is tagging them. That tweet from Luke is unexpected as it seems that there would be enough of Old Guard bitcoiners to take care of such a situation.

And this disclosure is a great thing. Seems like those 10,000 BTC aren't a new purchase though and they have been holding onto them through their subsidiary for quite some time. While banks everywhere tried to disparage BTC, their own employees, the asset and fund managers are the ones who had been stashing BTC.

Governments and their specific regulation regarding usage bitcoin as a reserve asset allowed public companies to start this "trend". On the one hand, these events make bitcoin more recognizable. Other companies, ones which haven't bought any bitcoin yet, are now considering buying, because otherwise they will not be able to compete on this new market. On the other hand, this trend may be harmful for bitcoin in terms of decentralization. What makes bitcoin more centralized and vulnerable for seizures is a situation when a big part of total supply is concentrated in the hands of thousands public companies. Governments, for example, can suddenly outlaw the usage of bitcoin, they can seize company's bitcoin assets or force company to use money substitutes issued by a central bank instead of bitcoin. All the bitcoins seized by governments and central banks may suddenly end up in their "vaults", thus they will be able to manipulate bitcoin price and control its supply.

There are probably many more institutions / hedge funds etc quietly accumulating bitcoin. Traditional investments & assets are a mess, big players need a hedge against the way markets will be heading & bitcoin is that hedge.

I was also interested when you already mentioned this saying, and according to what can be found, some say that it originates from Mahatma Gandhi which is actually partly true, because it seems to be a combination of something said by union leader Nicholas Klein in 1914, and later possibly slightly modified into what we have today.

---

As for this news, I think it is just another in a series of confirmations that something is happening when it comes to institutional investors, because as far as I know this trend did not exist when Bitcoin had a much lower price than it is today. While some may view all of this with a certain amount of skepticism because large amounts of BTC are concentrated in one narrow circle - no one can control the open market. What amazes me is that despite all these investments, the price of BTC is still not responding with a significant increase.

What it needs is a catalyst. A company that will start to gather and keep some Bitcoins and it has started already.
The effect and the trend maybe will last for quite some time. Some companies in the future might consider keeping some too for the company.

Regarding the next question, maybe this might help a bit to create some awareness but this doesn't help that much. I'm pretty sure though that throughout the years, more and more people will know Bitcoin and crypto in general and it will happen without the help of these companies. These big companies are just hedging their money because they know that the value of the currency they're holding is going down.

Maybe you misunderstand what trend means. It simply means a major change or development of events Basing on how this has been going on, I would say it qualifies to be a trend. Doesn't require hundreds or thousands of public companies to buy bitcoins before it's called a trend.

For example in this list (https://bitcointreasuries.org) we have 15 public companies that have come out to announce that they have acquired some BTC minus Stone Ridge and others that hve not come out in public.

If you go by the timeline from 2016 to 2020, then why shouldn't it qualify to be a trend?

2016
Zero public companies are recorded to have publically announced to purchasing BTC

2017
Zero public companies are recorded to have publically announced to purchasing BTC despite BTC making headlines everywhere with an all-time high. Most ridiculed it and called it a bubble which was about to burst

2018
In Q1 One German company, Advanced Bitcoin Technologies AG announced (https://www.abt-ag.com/assets/ABT%20AG%20Testierter%20Konzernabschluss%202019.pdf) they purchased BTC.

2019
DigitalX follows (https://clients3.weblink.com.au/pdf/DCC/02286540.pdf) suite

2020
A whopping 13+ public companies have so far announced that they have acquired BTC

1. Voyager Digital LTD
2. HUT 8 MINING CORP
3. Riot Blockchain, Inc.
4. Cypherpunk Holdings Inc
5. Galaxy Digital Holdings
6. MicroStrategy inc.
7. Argo Blockchain
8. 21Shares AG
9. BTCE
10. Grayscale Bitcoin Trust
11. CoinShares / XBT Provider
12. 3iQ The Bitcoin Fund
13. Square inc.
and now  Stone Ridge

This is one of the effect only to what Microstrategy and other companies have done because if other companies can see that there is a possible profit in investing a bitcoin especially in this kind of market then I am sure that they will grab the opportunity.

After the announcement of Stone Ridge, I am pretty sure that there will be a new company that will announce that they also acquire bitcoin and this is pretty good to all of us who fully support bitcoin as bitcoin price will surely to skyrocket in the following months and there is a  big chance that it will trigger the bull season to occur.

I might be over-critical, they are new, but as the largest stake holders, what are their plans to secure and make their investment more valuable? Simply HODL, then sell once they projected that Bitcoin is not a profitable investment anymore?

You and I can only speculate on what their intentions might be. Its true that people with millions to spend can have intentions for bitcoin. We can only have hope and speculation. From the looks of it, they have put the money because they believe that "cash reserves" for their company shouldn't just mean "cash" reserves. People like the MSTR guy are already supporting bitcoin publicly and this in itself is a contribution.

From Michael's tweets (https://twitter.com/michael_saylor/status/1316732498039263233), it does seem that he has the same deep understanding and respect for bitcoin that anybody who "gets" it has. I still think that they don't owe anything to bitcoin or bitcoin's devs to try and support it. They will most probably choose to do it themselves once they realize the importance of core devs. This in fact is a pretty burning question unto itself that how exactly is the open source development progress for bitcoin going on?? Maybe somebody who frequents the dev IRC can tell us. I have just seen a change in the names of posters and the discussions there quickly get too complicated to follow. Yet, seeing new names suggests that there is a stream of people joining in. Reading IRC and trying to gauge the nature of development going on there may be a worthy thing to do for some of the several "resource collectors" we have in the forum now.

I'm curious if this adoption by big companies will make smaller companies follow the lead. Or maybe even individual investors. Perhaps we are witnessing the birth of the momentum of instituational adoption. The more people believe that Bitcoin is a hedge/reserve asset, the more likely it will show these properties, because it's all about a common belief.

Institutions are starting to realize the value of the investment.  As the federal reserve continues to print money without end, more will realize the value of BTC's stable supply:
https://cointelegraph.com/news/10b-asset-manager-reveals-buying-115m-in-bitcoin-in-a-growing-trend

We need Buffet and BlackRock in this list!

It will be interesting if smaller companies will follow this, there is so much risk for them, even diversifying small percentage might spell doom for them. As for individuals investors, it should come from different market, specially gold and oil investors. Just imagine if we can sway millions from them and put it on bitcoin, it will be a big gain for us and this could fuel the next big bull run that we all have been anticipating, $40k-$100k per pop.

Of course this is good news for me as a Bitcoin enthusiast, more and more companies are buying Bitcoin in large quantities,
then the number of Bitcoin in circulation will decrease. With the increasing demand for Bitcoin, the price of Bitcoin should be
more expensive. So the trend of companies buying Bitcoin if it continues will help mass adoption, because it makes many people
feel positive about Bitcoin.

Large scale companies giving importance to bitcoin as a reserve treasury asset makes bitcoin to be dominant than the other traditional investment/stocks which were mostly acquired by the large scale companies. Already few have done it, the same trend is being followed. This is the right moment to invest, but these large players on the market also try to manipulate the market. This happens as everyone are into cryptocurrency is to safeguard their reserve, make money and increase the market for their company.

They don't owe, but I believe it should be a responsibility to a point. They are actually incentivized if they support the network that enriches them. There's an unusual synergy.

I believe rent-seeking might not take them, and their relationship with the network very far.