The article below was written by Damanick Dantes and was published on coindesk.com on March 10, 2021.
Even though Bitcoin has been around for a little over 12 years, mass adoption of it and other cryptocurrencies still has some hurdles to overcome. Public awareness at best is being dominated by F.U.D. (Fear, Uncertainty, and Doubt) as bad news travels fast while the truth is made to take a back seat. However, if we follow the money, the number will never lie to us. All you need to do is look at the number of companies that are now buying Bitcoin and other cryptocurrencies.
Mainstreet and Wall Street are starting to pay attention when just three-plus years ago all you heard about was the nefarious things Bitcoin was being used for. The U.S. dollar has been used to do far more nefarious activities, but it is still accepted around the world.
Like anything new, cryptocurrencies have to go through three phases of truth and go through the five stages of the public adoption of new innovation.
Regulations and legislation are still being developed because like anything the government does not understand, it has to control it, change, and make it fit some type of societal norm.
When Wall Street companies are buying Bitcoin and other cryptocurrencies it should tell the general public to pay attention to what’s going on, but life gets in the way and the working man and woman worry about simple things like food, clothing, and shelter for their families.
What is happening in the cryptocurrency market is one of the reason’s the rich get richer and the poor are getting poorer, exposure to opportunities that they are in a position to take advantage of and profit from the long-term holding of assets, or in the case of cryptocurrencies the ups and downs of the market.
By buying Bitcoin and other cryptocurrencies, institutional investors have bought some stability to the price as there are fewer Bitcoins in the market and scarcity means the price goes up. Don’t let the price fool you, putting your money into Bitcoin and other cryptocurrencies is risky, so never put more than you can afford to lose, conduct your own due diligence, and never give up control of your cryptocurrency.
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Bitcoin on the Balance Sheet? Corporate Buying Might Become a Global Trend
According to Arcane, the new corporate buyers appear intent on keeping the cryptocurrencies for the long term “and see further upside potential in bitcoin.”
Bitcoin and ether (ETH, -2.35%) purchases by companies in Scandinavia and Hong Kong are fueling speculation a wave of non-U.S. corporate treasurers might follow MicroStrategy, Tesla, and Square into buying cryptocurrencies, according to a new report by the Norwegian analysis firm Arcane Research.
Hong Kong-listed Meitu, a maker of photo-retouching software, said it bought 15,000 ETH and 379 BTC (+1.92%) in open-market transactions last week. Arcane figures the company paid an average $47,230, well below the current market level of around $57,000.
In addition, on Monday Aker, a Norwegian energy engineering company, added 1,170 BTC to its balance sheet, paying approximately $58 million, at an average price of around $49,600.
“The first wave, initiated by MicroStrategy, started in the U.S., but now the trend shows signs of turning global,” Arcane wrote.
With bitcoin firmly in a bull run, quadrupling in price last year, and nearly doubling in price already in 2021, the sooner a company got into the market, the better a price it got – as illustrated by Arcane’s chart below.
Source: Arcane Research