In recent months, many large companies in the world have started to buy large amounts of Bitcoin. It seems that every few days, there are news from another company that joins the growing list of Bitcoin investors.
One of the first big names in this space was Microstrategy, led by his CEO, Michael Saylor. Years ago, the company began to buy bitcoin, and since then its stock market has jumped 3,000%. Saylor said he thought that other companies would have no choice but to follow, especially since Bitcoin prices continue to increase.
Why do more companies buy Bitcoin?
As explained by an analyst, It’s simple: when a few companies start to buy bitcoin and their share of stock increases, other companies take note. Soon, more and more companies feel obliged to join us, which pushes the even higher bitcoin price. As the price increases, it becomes more expensive for new buyers to enter the market, which creates precipitation to buy before prices go up more.
New Indonesia player
A company called Digiasia in Indonesia has just announced its $ 100 million Bitcoin dollars purchase plans. Although it is not as important as microstrategy investments, it is always a huge amount. What is more surprising is that Digiasia plans to use 50% of its future profits to continue buying Bitcoin. This shows that it is really a question of making cryptocurrency a key element of their financial strategy.
More large numbers of other companies
Another company called Metaplanet also made the headlines. They want to build a bitcoin reserve of 10,000 bitcoins by the end of this year, and 21,000 at the end of next year. Recently, they revealed that they had already collected more than 6,700 bitcoins – much faster than expected.
The big question is now: with the price of Bitcoin which should reach around $ 370,000 to $ 500,000 by the end of this year, will these companies still be ready to buy more at such high prices? And what will happen if Bitcoin reaches $ 2.4 million by 2029 or 2030, as certain predictions suggest?
What does this mean for regular bitcoin holders?
Whenever a company buys thousands of bitcoins, it reduces the number of pieces available for everyone. Some experts have said that one day, even millionaires and billionaires could not buy a complete bitcoin, because many have been removed from the market by large companies.
There is an old idea in the world of cryptography that possession of only 0.28 bitcoin would put you in the upper 1% of Bitcoin holders. At the time, people thought it was a small number. But with companies that grasp huge amounts of Bitcoin, this 0.28 BTC is starting to be much more precious.
In short
More and more companies buy bitcoin as long -term investment. As these companies continue to add to their Bitcoin reserves, it could increase prices and make more difficult for others to buy in the future. And if Bitcoin reaches the price levels that some experts predict, this will make the small amounts of bitcoin belonging to regular investors even more precious.