Today news came out where one of the largest bitcoin holders, Square, refused to invest further in bitcoin.
The article is here:
Square has ‘no plans’ to buy more bitcoinOn the site
https://bitcointreasuries.org Square takes 3rd position, it is noteworthy that only MicroStrategy inc. of this trinity continues to buy bitcoin, having recently bought 271
BTC:
Likely it is fair to appreciate and recognize that Microstrategies remains a bit of an outlier in their approach to bitcoin.
I cannot remember exactly when I started telling beginner folks to invest between 1% to 10% in bitcoin and then go from there in terms of figuring out if you want to go outside of that range... I believe that i started to say that in around late 2014 when I had established my own position at about 10% of my investment portfolio in bitcoin, and at that point, I had considered myself to be a wee bit more aggressive and bullish about bitcoin, so that is why my allocation amount ended up being at the top of the recommended range - which surely, I was also suggesting that skeptics are going to end up investing way further down the range and perhaps even less than 1% depending on their circumstances, even though I had considered 1% as a basic starting point.. but of course, each person (or institution) should be considering his/her/its own particular circumstances anyhow when they are determining either how to allocate and how to go about establishing and maintaining such position and how to treat their position with the passage of time and the ongoing volatility of the asset, which has not really ever disappeared if we zoom out in terms of looking at either its price performance or the expectations of its price performance overall.
In some sense, and if history is any kind of guidance, no one (whether company or individual) should really need to invest more than 1% to 10% in bitcoin in terms of either being adequately exposed and then if BTC were to appreciate then it may well begin to take up way more than 1% to 10 % of the portfolio, especially if winners are allowed to ride.
Surely Microstrategies are more than able to determine their own circumstances to determine how much allocation to give to bitcoin, and surely they go into the really aggressive territory, which may or may not pay off for them, even though many of us longer term bitcoiners consider that their timing was quite good so they may well be able to have a lot of luck in outperforming so many companies that had approached the bitcoin investment matter more whimpily.
MicroStrategy has purchased an additional 271 bitcoins for $15.0 million in cash at an average price of ~$55,387 per #bitcoin. As of 5/13/2021, we #hodl ~91,850 bitcoins acquired for ~$2.241 billion at an average price of ~24,403 per bitcoin. $MSTR
Well, Tesla, which occupies the second position, has completely abandoned bitcoins so far:
https://twitter.com/elonmusk/status/1392602041025843203/photo/1yeah, musk is all over the place in his rhetoric, so we are not going to be able to rely on him to stick to any kind of long term position, but I would hardly characterize investing $1.5 billion and then taking out a couple hundred million as not having a stake - even though its seems difficult to figure out what the hell they are doing...or might do in an opportunistic way.
You should not presume what other companies are doing based on what saylor and musk did.
Sure public companies have to disclose, but there are a variety of more discrete ways of disclosing, and there are other rich entities and people who have no obligation to publicly disclose.
So large institutional investors are not yet particularly eager to get involved with bitcoin.
I doubt the evidence really supports your position, but you can believe what you like and sell or wait to buy or blah blah blah. Good luck, you may well need it if you are presuming that the top is in for this cycle.
NOT taking further bitcoin positions is not the same as selling their bitcoin position, so their concerns about energy consumption are likely either ill informed or just attempts at putting out misleading information (whether purposeful or not). Anyhow a lot of us more knowledgeable bitcoiners (maybe gonna include my lil selfie with smart money, here) realize is just pure bullshit to be asserting that there is some kind of meaningful or realistic energy consumption issue with bitcoin and likely the opposite scenario already exists through the incentives within bitcoin and proof of work.
Another thing might be that companies that already are involved in bitcoin as a business might be reluctant to over expose themselves to bitcoin, since their carrying out of their bitcoin related business practices may also already expose them to as much risk as they are currently ready, willing and able to tolerate, and these tolerances for risk is likely to change in the years to come - and hopefully they do not end up shooting their lil selfies in the foot with their overly conservative considerations... and ONLY they will be in a position to consider what is best for themselves and their circumstances.
Today news came out where one of the largest bitcoin holders, Square, refused to invest further in bitcoin.
The article is here:
Square has ‘no plans’ to buy more bitcoinOn the site
https://bitcointreasuries.org Square takes 3rd position, it is noteworthy that only MicroStrategy inc. of this trinity continues to buy bitcoin, having recently bought 271
BTC:
MicroStrategy has purchased an additional 271 bitcoins for $15.0 million in cash at an average price of ~$55,387 per #bitcoin. As of 5/13/2021, we #hodl ~91,850 bitcoins acquired for ~$2.241 billion at an average price of ~24,403 per bitcoin. $MSTR
Well, Tesla, which occupies the second position, has completely abandoned bitcoins so far:
https://twitter.com/elonmusk/status/1392602041025843203/photo/1So large institutional investors are not yet particularly eager to get involved with bitcoin. Square also released its quarterly report:
https://s27.q4cdn.com/311240100/files/doc_financials/2021/q1/Q1-2021-Shareholder-Letter.pdfThe report says a loss of $20 million due to the May Bitcoin dump
.
In general, Square no longer wants to invest in bitcoin and cites the same reason Musk recently cited, which is the problem of excess power consumption.
This is definitely a concern.
You seem to want to exaggerate, OgNasty. Not every company is going to want to take the same level of aggressiveness as Microstrategies, and it could be possible that they have not put themselves in a position to do so, like Microstrategies seems to have done.. at least so far.
It seems like large companies wanted to benefit from the obviously inflating Bitcoin bubble, but they don't want to stick around to see it through.
We are likely still quite new to the entrance of a variety of companies into bitcoin, and they are likely at least as diversified in their opinions as individuals, and they also likely have additional hoops to jump through as compared with individuals who have way more flexibility and individuals will likely be advantaged by their ability to be more flexible so long as they don't get sucked into believing bad information about bitcoin or get pushed into some kind of shitcoin or scam which surely catches a decent number of individuals already in this space, and some folks (including companies) are going to be more successful than others in terms of their navigation and their employment of strategies that end up working to their advantage (or at least are calculated to work to their advantages).
They don't actually care about Bitcoin.
They care a whole hell of a lot more now than they did 4 years ago or 8 years ago. So, sure adoption still remains pretty damned low, so whether anyone or institution gets into bitcoin will be shown about whether they end up being advantaged by such.. or if they try to play the system and end up getting burned. Time will tell, no?
They just wanted some easy money and now they're ready to run before things start to get messy.
Sure, some might be calculating that the top for this cycle is already in, but does not seem too likely that the top is already in for this cycle. So sure, some are going to calculate badly to the extent that they give shits about short term playing around once they have already decided to get in.. and sure, some may well decide not to get in yet and to see what happens before they decide whether and how to get in.
I think they see what most experienced Bitcoiners believe, we're going to see a massive bubble and then a massive correction.
You mean that if everyone does not agree with that vision then they are not a "experienced bitcoiner"?
Even "experienced bitcoiners" disagree, but sure there is quite a bit of consensus that bitcoin has 4-year cycles, so there can be disagreement about whether this particular cycle is over yet and if not how it might play out.
Also, there are some experienced bitcoiners who fucked up pretty damned badly in the past, and they may or may not be able to learn from their prior screw ups in order to play this particular cycle correct.
Many of us know that buy, accumulate and HODL has historically been a pretty damned good strategy, but even OG bitcoiners are going to vary to the extent to which they might have already shaved off profits, whether they plan to shave off profits in this cycle or whether they might feel that they need another cycle before they are going to be able to shave off profits (if ever), and even with that amount of variance and including that even BIG ASS screw ups might have been allowed to profit stupendously in bitcoin if the OG bitcoiner had actually had enough foresight or luck to HODL a sufficient amount of his/her stash rather than selling too much too early.
They don't want to be accepting Bitcoin during that massive bubble, they want to cash out.
Fair enough that the longer that a bitcoiner has been into bitcoin then the more likely that he is going to be wanting to sell during tops, and sure some companies might get the top wrong, too. So your point seems a bit weird even if their would be some truth to it, but I would not assume to know the top or attribute that knowledge to anyone else (even if they might believe they know what is a top and what is not because they may well get that top identification wrong, and that can be an uncomfortable place to be, and we have seen that a lot in bitcoinlandia.. whole maybe not knowing until after the fact about the significance of what we had seen.).
You can probably expect Elon to make up some nonsense or release some BS alternative energy mining product and then claim all is fine and Tesla will accept BTC again, as soon as the crash happens so he can score cheap BTC again...
Cannot disagree with you about that point OgNasty, which seems to be that Elon cannot really be relied upon to be consistent, and whether it will come back to bite him in the ass might be another story.
If Elon cared about the environment and not money, Tesla would be a non-profit and they'd be giving away a few billion dollars worth of cars per year to get combustion engines off the road. Instead, he's the richest man in the world. Look at the facts and actions, not the rhetoric.
Sure.. nothing really to dispute about these points.
This is definitely a concern. It seems like large companies wanted to benefit from the obviously inflating Bitcoin bubble, but they don't want to stick around to see it through. They don't actually care about Bitcoin. They just wanted some easy money and now they're ready to run before things start to get messy. I think they see what most experienced Bitcoiners believe, we're going to see a massive bubble and then a massive correction. They don't want to be accepting Bitcoin during that massive bubble, they want to cash out. You can probably expect Elon to make up some nonsense or release some BS alternative energy mining product and then claim all is fine and Tesla will accept BTC again, as soon as the crash happens so he can score cheap BTC again...
If Elon cared about the environment and not money, Tesla would be a non-profit and they'd be giving away a few billion dollars worth of cars per year to get combustion engines off the road. Instead, he's the richest man in the world. Look at the facts and actions, not the rhetoric.
As I wrote in this thread today:
More Adoption - More Speculation (?) these large companies that have invested in bitcoin, in fact they really care only about their core businesses, and for them bitcoin is just a means of earning money or a way of developing their company. Let's recall the same MicroStrategy, when they reported that thanks to bitcoin, their business on the stock exchange went uphill, giving tangible growth, and Tesla reported that thanks to bitcoin, they also got better. In the event of a crisis, these same companies will be the first to sell their bitcoins in order to save their position in the stock market. So I believe that those who helped bitcoin grow will be the same ones who will drown it. These will be the same companies.
Part of the reason that many of us should be grateful that Elon seems to be showing his true wishy washy colors, and yeah of course, there are always folks who follow the actions of celebrities, and they may well get reckt if they don't know how to attempt to account for what might be going on rather than possibly following someone that is all over the place which is likely NOT a very prudent approach to investing in bitcoin rather than gambling (even though a lot of folks like to gamble and ends up being to their detriment rather than establishing and practicing a more thought out approach to bitcoin).
