Thank you for all the diverse opinions, I think most of these reasons given probably have a lot of truth to them in some ways. Either way, this forum has been great for learning and luckily I pumped into a decent chunk of a Bitcoin over the last week so my investments have started off well. Long may the bull run continue.
I think there is a lot more stealth buying of bitcoin taking place right now buy large institutions and investment funds than they would like you to believe. Particularly in the last quarter there has been a large uptick in interest from these funds and the Paypal announcement was really the icing on the cake. If one of the worlds largest payment processors is willing to take on the regulatory nightmare that is bitcoin, it seems to me it has broken the final hurdle that stopped it being taken seriously. Lots more investment managers can now point to Paypal when their clients ask why they think it is a good idea to diversify and hold some cryptocurrency assets.
To be fair, the Paypal announcement is what got me interested as well and I'm sure that a lot of the money flying in at the moment has a lot to do with that. I guess it's possible that a spiral effect is already happening. If so, I got in at a very good time.
Maybe a cat and mouse play again. Institutional investors like to play the market the way they can see it better. There are plenty of good finance group but they are subtle to announce when they are going in. Actually they will told the public but they already bought a long time ago. This maybe called as pump my bag method but of course how do we know it as blockchain appears to be decentralized and cant totally identify whose the owner of those wallets that coming in and out.
That's one of the things that I would have expected to see more of by now, large investments companies that have already invested in Crypto letting people know about it in order to pump the price but unless I'm missing something it doesn't seem to be happening too much.
Because a lot of these companies instead(ands hould) use their cash to actually grow the company, not to buy speculative assets. If they were to buy things that they just think would go up in value, then they should've just started an investment fund instead.
Yeah, I was more talking about the investment funds and cash rich companies that are looking for ways to hedge their excess cash rather than your average companies that need their cash for day to day running of the business.
You see the glass half empty.
The way I see it, this year there are more companies that own bitcoin than last year, and next year there will be more. Microstrategy owns almost $500 million in bitcoin, other companies also own. With the bull market we are entering, more companies will buy bitcoin by the FOMO.
I see the glass half full.
I think my problem is that I see the glass too full at the moment and am trying to force a bit of healthy scepticism into my thinking. I'm actually banking on trippling my investment by the end of 2021