JP Morgan says large firms will not follow Tesla's bitcoin move

[AndySt]

For financial companies it's a no brainer. There is no downside in having say 1% of your portfolio in BTC. Well the downside is at most 1%. I think by now most investors would consider it prudent to take that risk, vs not taking it and missing the rise of BTC.
However Tesla isn't a financial company, so it's a bit of a different thing, I'm not even necessarily in favor of companies playing on the financial markets when it's not their business. Especially a company like Tesla that doesn't really earn money yet.
If it was Apple, it would make more sense, Apple has tons of fiat on bank accounts, it's a risk in itself.

Of course, the shares are different and individual percentages of some companies may seem like huge funds for others  The situation with Tesla's financial capitalization in general is a unique situation and perfectly illustrates the current realities of the modern stock market and other traditional markets, when such phenomena appear due to the policy of quantitative easing, and I am not sure that such actions of Tesla's management will not potentially hit the financial well-being of the company later due to the high risk of investing in cryptocurrencies.

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[Sithara007]

For financial companies it's a no brainer. There is no downside in having say 1% of your portfolio in BTC. Well the downside is at most 1%. I think by now most investors would consider it prudent to take that risk, vs not taking it and missing the rise of BTC.

However Tesla isn't a financial company, so it's a bit of a different thing, I'm not even necessarily in favor of companies playing on the financial markets when it's not their business. Especially a company like Tesla that doesn't really earn money yet.

If it was Apple, it would make more sense, Apple has tons of fiat on bank accounts, it's a risk in itself.

For me, it sounds surprising that these companies are not worried about the steep fall in purchasing power of the US Dollar, which can effect 99% of their savings. Instead, they are more concerned about the volatility of the remaining 1%. Volatility is not a bad thing, as long as the overall trend is positive. The corporations are not realizing the fact that they are losing huge amounts of money as a result of USD inflation. They should at least move a part of their reserves to bullion, if they are not in favor of BTC.

[doomloop]

The thing is... They should speak for themselves and not others. Yes JP Morgan might not be making the same move Tesla, but that doesn’t mean that other big firms won’t make that same move, there are so many of them that will likely be getting ready do that, and there have been so many of them doing it. Although the difference is going to be that they won’t invest as much as Tesla.

Tesla invested billions of dollars because it’s a very rich firm, so others that don’t have that kind of amount will stick to their level and invest what they can afford to risk. I don’t think any of them would like to miss out on an opportunity like this.

I don't think other companies really need to invest in BTC, instead if they can only allow and accept BTC that would be more than enough in my opinion.

I am not sure if the guy is mad or what but I was reading an article and JPMorgan suggested that investors might want to keep 1% of their portfolio in BTC which sounds like he is in favor of investing and holding BTC but earlier he made the statement that companies won't follow the same route as tesla.

I never even heard of this guy to be honest and I don't want to learn about him because it seems like he has a split personality or maybe suffering from some kid of bi-polar disorder. I don't mean to hurt anyone or their sentiments though, so accept my apology if you follow him and got hurt with my comments.

[cheezcarls]

Not all of these large firms can be pleased enough with Bitcoin. Despite Elon Musk’s influence in buying Bitcoin worth $1.5 billion, you can’t expect that others may be following suit. Only a few handful ones like Microstrategy, Mastercard, etc., are just seeing the vision and know how Bitcoin could help them in the long run.

[Vishnu.Reang]

Not all of these large firms can be pleased enough with Bitcoin. Despite Elon Musk’s influence in buying Bitcoin worth $1.5 billion, you can’t expect that others may be following suit. Only a few handful ones like Microstrategy, Mastercard, etc., are just seeing the vision and know how Bitcoin could help them in the long run.

Before 2020 no one really believed that any of the big corporations are going to invest in Bitcoins. And look at what we got. In Q3 2020, PayPal announced that they are integrating Bitcoin to their platform followed by the investment from Tesla many months later. Now Mastercard and some other big names are going ahead with their integration plans. So I would say that the momentum is with Bitcoin. We will hear more big names later this year, or by 2022.

[plr]

Large financial institutions understand very well the idea of diversification of investments. They have no choice but to invest in crypto seeing as fiat currencies like USD are bound to be hyper inflated. Precious metals are the alternative most look to, but BTC is superior and more convenient (for obvious reasons).

I agree they cannot ignore the market cap of Cryptocurrency which has grown too huge to ignore, they are going to lose a lot if they keep ignoring the Cryptocurrency market, if small traders and investors are making a lot why not big institutional companies, they get in now or they get it late.

[AndySt]

Not all of these large firms can be pleased enough with Bitcoin. Despite Elon Musk’s influence in buying Bitcoin worth $1.5 billion, you can’t expect that others may be following suit. Only a few handful ones like Microstrategy, Mastercard, etc., are just seeing the vision and know how Bitcoin could help them in the long run.

Before 2020 no one really believed that any of the big corporations are going to invest in Bitcoins. And look at what we got. In Q3 2020, PayPal announced that they are integrating Bitcoin to their platform followed by the investment from Tesla many months later. Now Mastercard and some other big names are going ahead with their integration plans. So I would say that the momentum is with Bitcoin. We will hear more big names later this year, or by 2022.

Strictly speaking, it is impossible to say that Mastercard and Paypal invested in Bitcoin. Mastercard and PayPal simply allowed transactions with bitcoins to be made on their platforms, but using only their infrastructure. Therefore, strictly speaking, we can really say that only Tesla invested in bitcoin from the major players, which in itself looks a little unnatural and risky due to the small income from the business of Tesla itself.

[Sithara007]

Strictly speaking, it is impossible to say that Mastercard and Paypal invested in Bitcoin. Mastercard and PayPal simply allowed transactions with bitcoins to be made on their platforms, but using only their infrastructure. Therefore, strictly speaking, we can really say that only Tesla invested in bitcoin from the major players, which in itself looks a little unnatural and risky due to the small income from the business of Tesla itself.

Tesla's business itself is risky. And it is even more risky to invest in the Tesla stock, which is having a P/E ratio of more than 1,000. They took the risk and were rewarded. Bitcoin prices have risen by more than 60% ever since they purchased their coins and that translates to roughly $900 million in unrealized gains for Tesla. I guess this is more than their net income for the entire year from their main business.

[torrantz]

I guess it's just how large firm behave, not gonna invest into something until they really sure and many people have already jumped in and I guess that happens to their idea of diversification too and risk calculation.
However, there's always an outlier why will try to make fortune when thing is still young and make many profit out of it, JP Morgan could say whatever he wants but I'm sure in the future there gonna be some large firms investing to crypto.

[Mauser]

I guess it's just how large firm behave, not gonna invest into something until they really sure and many people have already jumped in and I guess that happens to their idea of diversification too and risk calculation.
However, there's always an outlier why will try to make fortune when thing is still young and make many profit out of it, JP Morgan could say whatever he wants but I'm sure in the future there gonna be some large firms investing to crypto.

I agree, there are always some outliers. If all companies would do the same we wouldn't need any financial adivsors in the first place. Imagine all the banks having the same opinion on stocks and commodities. There are already quite a few mid size firms switching their cash into bitcoins. Eventually some of the larger firms will go into the crypto world as well. The risk of missing out on the new future is rising with the bitcoin price.

[keyscore44]

I guess it's just how large firm behave, not gonna invest into something until they really sure and many people have already jumped in and I guess that happens to their idea of diversification too and risk calculation.
However, there's always an outlier why will try to make fortune when thing is still young and make many profit out of it, JP Morgan could say whatever he wants but I'm sure in the future there gonna be some large firms investing to crypto.

I agree, there are always some outliers. If all companies would do the same we wouldn't need any financial adivsors in the first place. Imagine all the banks having the same opinion on stocks and commodities. There are already quite a few mid size firms switching their cash into bitcoins. Eventually some of the larger firms will go into the crypto world as well. The risk of missing out on the new future is rising with the bitcoin price.

Actually, it's not about the Bitcoin price itself, but about its capitalization. Until now, large companies have been afraid of investing in Bitcoin due to its very high volatility and the possibility of price manipulation by whales. I think we are at the stage where, slowly, large companies are starting to believe that Bitcoin will soon reach a capitalization that will make manipulation impossible.
JP Morgan is probably just relying on the fact that this capitalization is too small for him, but that's just their opinion, nothing more. The free market will decide for itself.

[Princejebs]

Not all of these large firms can be pleased enough with Bitcoin. Despite Elon Musk’s influence in buying Bitcoin worth $1.5 billion, you can’t expect that others may be following suit. Only a few handful ones like Microstrategy, Mastercard, etc., are just seeing the vision and know how Bitcoin could help them in the long run.

Even at the current stage of bitcoin, we shouldn't underestimate the mind of human because it's dynamic for every second. I have this feeling and thought that most of this popular companies are into cryptocurrency but they are yet to go public perhaps the fear of SEC and its news effects on their share.
I still think this guys are heavily buying and selling of crypto in every pump and dump.

[Twinkledoe]

Not all of these large firms can be pleased enough with Bitcoin. Despite Elon Musk’s influence in buying Bitcoin worth $1.5 billion, you can’t expect that others may be following suit. Only a few handful ones like Microstrategy, Mastercard, etc., are just seeing the vision and know how Bitcoin could help them in the long run.

Even at the current stage of bitcoin, we shouldn't underestimate the mind of human because it's dynamic for every second. I have this feeling and thought that most of this popular companies are into cryptocurrency but they are yet to go public perhaps the fear of SEC and its news effects on their share.
I still think this guys are heavily buying and selling of crypto in every pump and dump.

I am more into this thought. I believe a lot of companies are already buying their bitcoin, however, they are keeping silent because of the potential problem with SEC or their government. In time, some of them will disclose their crypto investments to the public. I don't think only MicroStrategy, or PayPal and other few are only buying. They are more of them already.

[Sithara007]

I am more into this thought. I believe a lot of companies are already buying their bitcoin, however, they are keeping silent because of the potential problem with SEC or their government. In time, some of them will disclose their crypto investments to the public. I don't think only MicroStrategy, or PayPal and other few are only buying. They are more of them already.

I don't think that any of the publicly listed companies are hiding their Bitcoin purchases. Private companies can do that, but it is illegal for publicly traded companies to do so. For now, most of them are taking a "wait and watch" stance. With Janet Yellen and others in the government warning against the usage of cryptocurrency, I don't expect a lot many companies to jump in to the bandwagon too soon.

[adzino]

Even at the current stage of bitcoin, we shouldn't underestimate the mind of human because it's dynamic for every second. I have this feeling and thought that most of this popular companies are into cryptocurrency but they are yet to go public perhaps the fear of SEC and its news effects on their share.

Why is everyone saying that they aren't investing in bitcoin or other crypto currencies because they fear SEC? As far as I know, SEC or any financial regulatory body cannot stop a company from investing in crypto currencies or any assets. As long as they follow business laws and everything properly, they can do whatever they want.

I have this feeling and thought that most of this popular companies are into cryptocurrency but they are yet to go public perhaps the fear of SEC and its news effects on their share.

If they do, they have to notify it publicly. They probably did, but aren't vocal about it. I am sure there are tons of small to mid companies that are holding bitcoins as assets.

.
I still think this guys are heavily buying and selling of crypto in every pump and dump.

I doubt they would be trading it. They are likely to hold it as a long term investment. Too risky and complicated if they join the pump and dump trend.

[Kakmakr]

You really want to listen to one of Bitcoin's biggest target for disruption? Bitcoin was developed to disrupt corrupt Banking organizations like JP Morgan ..and they know it. Take a sniff at this ==> https://violationtracker.goodjobsfirst.org/parent/jpmorgan-chase

JP Morgan is one of the Banks with the worst track records for financial misconduct and their credibility is shattered in the financial world. Why would anyone want to listen to their advice?

They have been criticizing Bitcoin for years and everyone know what their agenda is. (They want to prevent disruption of their profits) 

[darewaller]

Not all of these large firms can be pleased enough with Bitcoin. Despite Elon Musk’s influence in buying Bitcoin worth $1.5 billion, you can’t expect that others may be following suit. Only a few handful ones like Microstrategy, Mastercard, etc., are just seeing the vision and know how Bitcoin could help them in the long run.

The problem is because of blockchain being such complex although excellent technology, there are not many who fully understand what it can provide and those who understand will never think twice before investing and adopting Bitcoins. Elon Musk being a technology lover has understood what Bitcoin does and what it can do to the economy and hence he adopted it, others might take time.

Someone 10 years ago if predicted that bitcoin will be $50k each Bitcoin, people might have laughed and cracked jokes about it but today after it reached that value, we now realize the potential.

Similarly, it will take time for people to understand and adopt Bitcoins but I can easily say that Bitcoin will be worldwide accepted in the coming 5 years, might sound like an exaggeration now but not after 5 years. As far as JP Morgan's statements are considered, he doesn't own the world.

[Argoo]

Not all of these large firms can be pleased enough with Bitcoin. Despite Elon Musk’s influence in buying Bitcoin worth $1.5 billion, you can’t expect that others may be following suit. Only a few handful ones like Microstrategy, Mastercard, etc., are just seeing the vision and know how Bitcoin could help them in the long run.

For now, it is enough for at least a small part of companies to follow Tesla's example and start investing in cryptocurrency. This will already be a significant breakthrough. And such cases should be all the same. True, in order for legal entities to be able to invest in cryptocurrency, you need to have appropriate legal regulation.

[tygeade]

I guess it's just how large firm behave, not gonna invest into something until they really sure and many people have already jumped in and I guess that happens to their idea of diversification too and risk calculation.
However, there's always an outlier why will try to make fortune when thing is still young and make many profit out of it, JP Morgan could say whatever he wants but I'm sure in the future there gonna be some large firms investing to crypto.

I believe there is going to be something much better in the future but they are sort of right, following usually means one thing is done and another thing happens right afterwards and I believe that didn't happen, JP Morgan didn't mean it like "nobody will invest into crypto" that is not really wise to expect, that wouldn't be possible, at the end of the day we are going to end up with a situation like there will be some sort of investments over long period of time but I think people didn't followed Tesla all that much, at least not the big companies.

If there was another news like Apple bought 1 billion dollars of bitcoin in a week or 10 days, and after that Google invests another 1 billion dollars to bitcoin and after a while facebook buys half a billion dollars into bitcoin and so forth, if that happened all in a month or two we could actually say they were wrong but now I don't think we can say they are wrong.

[Snappycoco]

It is completely inaccurate. As many investors are seen in these past few months, it has been greatly seen that large institutions are getting into cryptocurrencies.