Are institutions hedging?

[Wind_FURY]

There’s a topic debating that institutions are manipulating the market, and will “destroy Bitcoin”. I have a different narrative.

While it’s great that Elon Musk and other companies are HODLing bitcoin, but don’t you think that there is more into their FOMO, than profit? Are they actually hedging against the current financial system? If the answer is yes, are they expecting an major economic crisis after the COVID-crisis?

[1715181092]

1715181092

[1715181092]

1715181092

[1715181092]

1715181092

[1715181092]

1715181092

[1715181092]

1715181092

[jackg]

I'd say it's more there just buying it because they believe it's value will go up.

The economies of most countries are fairly atticicially controlled by some nominated entities (central banks) so I'm not sure too much economic fallout can arise - especially stuff that could damage the stock market or pension schemes.

[cabron]

I'd like to see the ideas of the rest of us. For me, the crash isn't over yet until the pandemic is over. But even when pandemic is over there are just so many faults that were discovered in the system and I don't think they are going to trust it will not happen again. Economies will never be the same again so probably they are hedging as well and crypto is their best option.

[davis196]

There’s a topic debating that institutions are manipulating the market, and will “destroy Bitcoin”. I have a different narrative.

While it’s great that Elon Musk and other companies are HODLing bitcoin, but don’t you think that there is more into their FOMO, than profit? Are they actually hedging against the current financial system? If the answer is yes, are they expecting an major economic crisis after the COVID-crisis?

Bitcoin is way too volatile to be used for Hedging.If people like Musk try to use BTC for hedging,the Federal reserve or the US government might start to FUD or impose a crypto trading ban,that will crash the Bitcoin price by more than 50% almost immediately.
Nobody can tell you whether or not Musk is expecting a major economic crisis after the pandemic.
I expect the global economy to recover pretty fast,after the pandemic ends.The unemployment rates will go down for sure,but inflation might increase.

[TheUltraElite]

Celebs doing their thing.

They dont care about the problems faced by the economy after a pandemic, but their own profits and using the market's situation to bullrun their own assets. There is a lot of FOMO, I agree. This is the time to sell bitcoin and Dogecoin if you own any and hold USD - the intelligent move. Wrongly though some newbies will rush in the FOMO and I am expecting a drop in price after this trend ends at which point the actual buying should be done.

Now institutions may be hedging funds or not, cannot be said right away. They are trying to move a stagnant market of bitcoin to a moving one is my assumption. They may be trying to use this opportunity to make a profit off what they had bought. It might vary from person to person.

Again the rich people will always become rich, so no crisis for them but more chances of profits. The middle and poor classes will suffer.

[iamsheikhadil]

In my opinion, I think Elon Musk is seeing Bitcoin as a tool for nothing except good profits and not as in he believes in its vision. I like Elon Musk, and he's a visionary person, but when it comes to Bitcoin, the way he is heading, like tweeting about Bitcoin, making memes of Dogecoin, etc, I think he's not really into the visionary aspect of crypto. He's more like in the investment section that might yield him profit or some influence over traditional banking systems.

[zanezane]

I think that institutions are definitely hedging, if you have a business and you see an opportunity to have a safety net for your business, would you ignore it? If yes then that will be what most institutions will do, human has somewhere in their gene encoded that everything we own or cherish should be preserved. The only problem with this is that most people in the business sector doesn't know when to stop on how big their hedge is, which means that there will be less for those who can't afford a lot.

[LogitechMouse]

While it’s great that Elon Musk and other companies are HODLing bitcoin, but don’t you think that there is more into their FOMO, than profit? Are they actually hedging against the current financial system? If the answer is yes, are they expecting an major economic crisis after the COVID-crisis?

This scenario popped out on my mind already when institutions are slowly coming into the market.
Knowing also that the value of dollar is withering faster right now because of QE, this companies need to hedge their funds and investing into crypto is their way to do it.

They might be hedging, they might just invest into crypto just to have profits. We don't know the exact meaning into it but I believe that they are just hedging and there is a big chance that after this crisis will be the start of this institutions selling it. It might happen but we'll see.

[NeuroticFish]

While it’s great that Elon Musk and other companies are HODLing bitcoin, but don’t you think that there is more into their FOMO, than profit? Are they actually hedging against the current financial system? If the answer is yes, are they expecting an major economic crisis after the COVID-crisis?

They want profit. Profit as actual fiat they'll get when they'll Bitcoin more expensive, profit as advertising/image/public perception as an innovative company.
If a crisis will strike they'll most probably be among the first to sell Bitcoin to protect their assets and maybe buy assets from companies that got into trouble.
For them everything is just another tool for prosperity and power. Don't think that they care of you, or me, or Bitcoin.

[Wind_FURY]

I'd say it's more there just buying it because they believe it's value will go up.

The economies of most countries are fairly atticicially controlled by some nominated entities (central banks) so I'm not sure too much economic fallout can arise - especially stuff that could damage the stock market or pension schemes.

You don’t believe that inflation will be a major cause of a huge economic crisis, which is caused by all the BRRRR printing by the Fed? I believe they’re hedging in case the Fed loses control of the monetary system.

How long after the money printing events, before inflation is felt and takes effect?

https://www.frbsf.org/education/teacher-resources/us-monetary-policy-introduction/real-interest-rates-economy/

HOW LONG DOES IT TAKE A POLICY ACTION TO AFFECT THE ECONOMY AND INFLATION?

It can take a fairly long time for a monetary policy action to affect the economy and inflation. And the lags can vary a lot, too. For example, the major effects on output can take anywhere from three months to two years. And the effects on inflation tend to involve even longer lags, perhaps one to three years, or more.

[Karartma1]

Humans have always looked for ways to store their wealth over the years and we all know that.
For that reasons my simple anwser is yes, institutions, smart investors, people like us and companies are hedging against the current financial system. It is a necessary move to preserve some wealth before the real economic crisis caused by the pandemic will hit. The fracture between those who were able to sustain themselves despite covid and those who saw the ground grind under their shoes is too big.
Don't just think about hedging, but secure your holdings for the future: that's what institutions are doing, do the same.

[ashmodeus]

There’s a topic debating that institutions are manipulating the market, and will “destroy Bitcoin”.

nah , it won't be happened , TESLA do a great action by buying huge amount of btc.
For me ,the reason behind why tesla jump it market directly its seems like signal , probably yes , a huge crisis will come soon. did u remember when ELON tweeted this one , but well, it depend about your perpective, but for me, i have no reason for doubt it, at least for next few month.

[ChiBitCTy]

There’s a topic debating that institutions are manipulating the market, and will “destroy Bitcoin”. I have a different narrative.

While it’s great that Elon Musk and other companies are HODLing bitcoin, but don’t you think that there is more into their FOMO, than profit? Are they actually hedging against the current financial system? If the answer is yes, are they expecting an major economic crisis after the COVID-crisis?

I think that there is a little bit of everything going on with companies starting buy/own bitcoin.  I think many of us bitcoiners are hedging against the fiat dollar of our own country, so why shouldn't banks.  I also think that these institutions are simply making investments in something that they believe in. IMO it's for these reasons and others.

[Hydrogen]

While it’s great that Elon Musk and other companies are HODLing bitcoin, but don’t you think that there is more into their FOMO, than profit? Are they actually hedging against the current financial system? If the answer is yes, are they expecting an major economic crisis after the COVID-crisis?

https://www.youtube.com/watch?v=YAtLTLiqNwg

44:02 - Elon Musk says short sellers tried to destroy TSLA stock twice. He makes a few interesting points on short selling earlier in the clip.

His view of short selling might be described as a design or structural flaw of markets. Which could imply a desire to insulate or distance a portion of his holdings from said markets.

I would guess its an experiment coupled with Elon Musk's love for memes and trendy cool things like BTC.

Elon Musk's net worth is calculated at around $200 billion. TSLA purchasing $1.5 billion in BTC amounts to less than 1% of Musk's net worth. A mountain of an investment for normies like us. But for Elon Musk it won't affect his finances.

[Wind_FURY]

While it’s great that Elon Musk and other companies are HODLing bitcoin, but don’t you think that there is more into their FOMO, than profit? Are they actually hedging against the current financial system? If the answer is yes, are they expecting an major economic crisis after the COVID-crisis?

https://www.youtube.com/watch?v=YAtLTLiqNwg

44:02 - Elon Musk says short sellers tried to destroy TSLA stock twice. He makes a few interesting points on short selling earlier in the clip.

His view of short selling might be described as a design or structural flaw of markets. Which could imply a desire to insulate or distance a portion of his holdings from said markets.

I would guess its an experiment coupled with Elon Musk's love for memes and trendy cool things like BTC.

That’s a simplistic viewpoint, if that’s what you truly believe, and a very irresponsible “$1,500,000,000 experiment” for Elon Musk, and Tesla.

Elon Musk's net worth is calculated at around $200 billion. TSLA purchasing $1.5 billion in BTC amounts to less than 1% of Musk's net worth. A mountain of an investment for normies like us. But for Elon Musk it won't affect his finances.

Tesla is a public company, it’s not the personal property of Elon Musk.

Back to the topic, how high is the probability that the U.S. will go through hyperinflation after BRRRR printing by the Fed?

https://seekingalpha.com/article/4371490-united-states-is-going-hyperinflation

The article concludes,

Investors should prepare themselves right now against this inflationary wave. A good example to follow is Warren Buffett, who bought an initial stake in Barrick Gold (NYSE:GOLD) in the last quarter. I suggest we follow the great oracle and stock up on gold and gold miners.

He’s a normie, what he knows as a hedge is Gold. As Bitcoiners, and as Elon is exposed to cryptocurrencies, our/his hedge is?

[traderethereum]

I do not care about the manipulating the market or another topic about "destroy bitcoin" because people will see how bitcoin can help them.
People will only think about how they can make money from bitcoin, and they do not think much about all of that.
Maybe they think that they want to hedge their financial system by using bitcoin to their company.
We do not know if they expect a major economic crisis after the covid crisis because they do not tell about that.

[Wexnident]

Not that I'd understand much with regards to manipulation, but wouldn't it run contrary to what they want if they actually ended up destroying the market? It's like viewing the short term benefits while ignoring the possible long term ones. I'm pretty sure that at least one or two of the people around them have at least some knowledge of the possible repercussions of manipulation of the market, especially if done on a big scale.

That, or just people are putting them on a pedestal, thereby indirectly affecting the market. The celebrity doesn't really know what's happening and is just sharing his opinion, but people are putting it as a high priority to follow, hence the current situation.

[hatshepsut93]

Well, Michael Saylor and others have been literally saying that Bitcoin is an insurance against inflation, and in 2020 the US dollar has lost a lot of value because of covid-19 and government's response to it. I don't think that they believe that the entire financial system is going to fall, because that would mean that they will go out of business and even Bitcoin won't be able to save them. They might not even believe that fiat is doomed in the long term like many Bitcoiners think - maybe they are just hedging for the near future as we are still in difficult times because of the pandemic.

[Hydrogen]

That’s a simplistic viewpoint, if that’s what you truly believe, and a very irresponsible “$1,500,000,000 experiment” for Elon Musk, and Tesla.

Tesla is a public company, it’s not the personal property of Elon Musk.

Back to the topic, how high is the probability that the U.S. will go through hyperinflation after BRRRR printing by the Fed?

If the goal is protection against inflation and fiat devaluation. Its normal to invest a higher proportion than 1% of net worth into gold, silver, bitcoin. Investing 1% of net worth into inflation protected assets is like buying bullet proof body armor that covers 1% of your body. Yes it will provide protection. But is it the type of comprehensive protection someone would want in an emergency.

Musk putting less than 1% of his net worth into BTC implies an impulse buy or small diversification strategy IMO. It is possible Musk is coordinating with Michael Saylor and others. Deals are being made behind the scenes. In exchange for Musk pumping BTC higher. But such would not amount to more than pure speculation on my part.

Many investment and money gurus recommend listing home ownership and assets under a corporation they control. Many of Musk's assets could be listed under TSLA or another private sector entity.. A very high percentage of Musk's net worth is tied up in TSLA stock he owns. Which translates to Musk having the majority vote on topics that come up. Technically its a public company but Musk holds the controlling vote.

As noted in previous posts, the fed says it is attempting to contain inflation by isolating it inside the banking sector. Stimulus spending however floods into public markets. It cannot be contained and is where most danger associated with currency devaluation and inflation stem from.

[Febo]

There’s a topic debating that institutions are manipulating the market, and will “destroy Bitcoin”. I have a different narrative.

While it’s great that Elon Musk and other companies are HODLing bitcoin, but don’t you think that there is more into their FOMO, than profit? Are they actually hedging against the current financial system? If the answer is yes, are they expecting an major economic crisis after the COVID-crisis?

Tesla or Elon Musk are not institutions. Right now many people expect corporations and companies will start buying Bitcoin just like Tesla. Not the institutions.   

For Tesla. If Musk would want to hedge Tesla against fiat collapse, he would also buy Gold. He did not, he only bought Bitcoin, so it is pure speculation.