After Bitcoin (BTC) was published by Satoshi Nakamoto in 2009, it was long regarded as digital play money, primarily for internet nerds. Over the years, however, the digital currency has developed into a popular form of investment for private investors around the world. In the meantime, Bitcoin has grown and is enjoying increasing popularity not only with private investors. Because the problems in the financial market are making digital gold more and more attractive for companies.
Square is buying $ 50 million worth of bitcoins
In the past few weeks, news of large companies investing in bitcoins has been mounting. That should particularly please many private investors. Because investments of this amount by well-known and respected companies should have a positive long-term effect on confidence in the world's largest digital currency. Bitcoin has long been laughed at and referred to as play money for the Darknet, but it continues to grow and proves that it is much more than that.
Most recently, Square, a subsidiary of Twitter, is investing USD 50 million in Bitcoin (BTC). This corresponds to an amount of more than 4.700 bitcoins. However, this is not particularly surprising for anyone who has more information about the company. Because Twitter CEO Jack Dorsey is known as a big fan of the digital currency and sees enormous potential in the currency. As early as 2018, he said that Bitcoin could develop into a global reserve currency.
The software manufacturer MicroStrategy, which is listed on NASDAQ, had stocked up on Bitcoins even higher. In total, more than USD 400 million in coins were purchased, which corresponds to approximately 38.250 BTC at the time of purchase. With a maximum supply of 21,000,000 Bitcoins, the company owns more than 0,18% of all coins available.
According to Tyler Winklevoss, one of the most famous faces in the crypto market, this is only the beginning of an upcoming tornado. He writes on Twitter:
"First it was @michael_saylor and the publicly traded company @Microstrategy who bought bitcoins for $ 425 million. Today it's @jack and @square buying bitcoins for $ 50 million. Tomorrow it will be another, visionary managing director, and later another, and another ... the tsunami is yet to come. "
First, it what @michael_saylor and publicly traded @MicroStrategy buying $ 425million of # Bitcoin. Today, it is @jack and @square buying $ 50million of bitcoin. Tomorrow, it will be another visionary leader, and another, and another ... the tsunami is coming https://t.co/MjF5z6u7ha
— Tyler Winklevoss (@tylerwinklevoss) October 8, 2020
The persistent problems in the financial market, as well as the vanishing trust in the global, traditional monetary system are not only causing private investors to look for alternatives. It will be interesting to see which company will next invest in Bitcoin as a bet against the financial system.
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