Bitcoin Will Establish Itself As the Primary Reserve Asset for All Major Companies in the Future
The movement will accelerate in the coming months.
Technological changes happen gradually, then suddenly everything accelerates. I’m sure you’ve read or heard this before. With Bitcoin, this is how it’s happening.
The greatest technological disruption since the appearance of the Internet, Bitcoin is a true monetary revolution for which everything is currently accelerating.
Created a little over eleven years ago by Satoshi Nakamoto, Bitcoin has gradually progressed over the past decade. First in secrecy, and then in the face of much criticism from opponents afraid of its revolution, Bitcoin has advanced at its pace block by block.
Bitcoin was given by Satoshi Nakamoto as a magnificent gift to all the inhabitants of the Earth.
All those who discovered Bitcoin’s incredible potential for the future have become Bitcoiners whose role is comparable to that of missionaries. Bitcoiners are there to support Bitcoin and to give back what Bitcoin brings to them.
Mindset concerning Bitcoin is changing in 2020
If Bitcoiners have been fighting more or less alone since the invention of Bitcoin, the situation is radically changing in 2020.
It all started with a pandemic of a magnitude not seen in decades. Started in China at the beginning of December 2019, COVID-19 became a global pandemic from March 2020.
The reaction of all countries to limit the spread of this pandemic had disastrous effects on the global economy. The great economic crisis expected for months was triggered by this coronavirus pandemic.
To support the global economy, the central banks of the world’s major economic powers have all chosen the same solution: printing fiat money out of thin air. More than 10,000 billion dollars have already been printed and injected into the current monetary and financial system.
Even though this solution is at the root of all the evils of the current system, central banks continue to abuse it. This allows the States to continue to borrow more and more money to finance stimulus plans that will have to be paid for by future generations through taxes.
The economic crisis highlights the flaws of the current system
It also produces the famous Cantillon Effect described by Richard Cantillon as early as the 18th century. All this money injected into the system makes the rich ever richer, while the poor have to live in ever more difficult conditions.
Bitcoin Is Your Antidote Against the Cantillon Effect
Bitcoin protects your savings against currency devaluation.
To convince yourself of this, you only have to look at what is happening in the American stock market where Fed actions have created a real Tech bubble. Buoyed by the combination of the TINA and FOMO effects, the stock market is currently breaking records.
Apple has just surpassed the $2,000 billion market cap for the first time in its history. Even better, it is the first time an American company has exceeded this market cap. Tesla’s share price has risen more than 850% in one year.
Microsoft, Amazon, Google, or Facebook are also taking advantage of this Tech bubble. While Main Street is at its worst, Wall Street lives in a total illusion. I call this the iceberg illusion:
This illusion, that allowed Jeff Bezos, Mark Zuckerberg, or Elon Musk to see their fortunes explode since March 2020, can’t last forever. Sooner or later, the stock market will crash and reconnect to the real economy.
The great monetary inflation that we are currently experiencing is largely responsible for the current situation.
The weakness of the U.S. dollar imposes pragmatism regarding Bitcoin
A situation that sees the U.S. dollar weakening more than ever, and the purchasing power of those who choose to trust Uncle Sam Money losing its value continuously.
Weak U.S. Dollar Boosts Gold Above $2K, Just As It Will Boost Bitcoin to a New All-Time High
Gold is breaking records today, and tomorrow it will be Bitcoin.
The purchasing power of $1,000 in 1971 doesn’t even represent $150 in 2020.
Throughout the past decade, some people have understood this before others. Gradually, more and more people started buying Bitcoin. The trend accelerated during the end of the decade as the Bitcoin price in U.S. dollar became higher and higher.
In 2020, pragmatism took over the sterile opposition to Bitcoin. Institutional investors, some banks, and more and more companies realized that Bitcoin was here to stay.
Bitcoin is not a fad or a technology reserved for a few geeks. Bitcoin is first and foremost money that will not be replaced by any other cryptocurrency.
In a world that is more uncertain than ever, Bitcoin is a hedge that offers you an incredible guarantee: by buying 1 Bitcoin, you are guaranteed to buy 1 Bitcoin forever out of 21 million units.
Bitcoin responds to a need that will only grow in the years to come
Except for time, you won’t find anything as scarce as Bitcoin on Earth.
Bitcoin scarcity combined with its resistance to all types of censorship will cause the demand for Bitcoin to explode in the future.
With the supply of new Bitcoins inevitably shrinking, and the schedule of the issuance of new Bitcoins written into its source code, the Bitcoin price is set to reach incredible heights in the future.
I wouldn’t be surprised if the Bitcoin price reaches the million-dollar mark in 20 or 30 years.
The Two Biggest Reasons Why Bitcoin Price Will Reach $1,000,000 Within 20 Years
The success of Bitcoin in the future is inevitable.
Those who say that Bitcoin is not capable of doing that are the same people who said that Bitcoin would never reach a price of $100 when its price was $1. You know what happened next.
MicroStrategy makes a historic decision and becomes Bitcoin Maximalist
Realizing that Bitcoin is a formidable hedge against the infinite monetary inflation of the U.S. dollar, MicroStrategy was the first to adopt a bold strategy in early August 2020.
While Michael J. Saylor, CEO of MicroStrategy, had always been a Bitcoin hater until then, he completely changed his mind in 2020. He even became a Bitcoin Maximalist who pushed MicroStrategy to make Bitcoin its primary treasury reserve asset.
In the aftermath, MicroStrategy announced that it had purchased for 21,454 BTC in a $250 million aggregate purchase.
Michael J. Saylor’s rationale for this new strategy was simply to explain that the decision to purchase Bitcoin was a logical move to maximize the long-term return on investment for their shareholders:
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders.”
The rest of Michael J. Saylor’s official statement is a plea for Bitcoin as you can judge for yourself:
“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash. Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”
This extremely smart move by MicroStrategy is a first for a company listed on the U.S. stock market.
It proves, if proof were needed, that Bitcoin’s greatest value proposition right now is to be a store of value to hedge against the great monetary inflation we are experiencing.
The Tahini restaurant chain is making a name for itself by following the same strategy
Less than two weeks after MicroStrategy’s spectacular announcement, Canadian restaurant chain Tahini publicly announced that it had made a similar move :
“We just converted our entire cash reserves that were originally used as savings into bitcoin.”
One of the owners of this Canadian restaurant chain explained that he has always been a big fan of Warren Buffett. For example, he had always thought that Bitcoin was a “Rat poison squared” as Warren Buffett might have put it.
And then, this unprecedented crisis in 2020 has called all his certainties into question. He gradually discovered Bitcoin and its many advantages. He details his vision of Bitcoin as a savings technology:
“For me I view Bitcoin as a true free savings technology that stores wealth across time and space.”
After converting all its cash reserves into Bitcoin, Tahini plans to continue this ambitious strategy in the coming months and years.
The choice made by MicroStrategy has set off a trend that will only accelerate in the future. Never forget what I say at the beginning of this story:
“Gradually, then suddenly …”
Everything seems to be happening suddenly for Bitcoin at the moment, but this is the result of its gradual progression over the last eleven years.
A third company joins the Bitcoin camp, and things will suddenly speed up
On August 24, 2020, a third company jumped on the bandwagon. It is the startup Snappa. This is a smaller company than MicroStrategy. Nevertheless, it is interesting to note that Bitcoin appeals to all kinds of companies.
Snappa has chosen to adopt Bitcoin as a reserve asset. Christopher Grimmer, Snappa’s CEO, and founder, explained this decision in detail in a blog post that I strongly encourage you to read: “Why We’re Holding Bitcoin as a Reserve Asset”.
This blog post makes it clear that CEOs who decide to make Bitcoin their reserve asset are not acting on a whim carried away by the prospect of the upcoming Bull Run for Bitcoin.
The choice of Bitcoin is a considered one. It is made after studying Bitcoin and all the other alternatives currently available to them. In the end, the conclusion is the same for the CEOs of the three companies I have just mentioned:
Bitcoin is the best possible reserve asset in 2020.
Like macro investor Paul Tudor Jones said in May 2020, Bitcoin is currently the fastest horse in the race for profits. Choosing Bitcoin in 2020 is pure pragmatism for anyone who wants to hedge against the great monetary inflation we are experiencing.
Initiated by MicroStrategy, this major strategic move will accelerate in the coming months. More and more large companies will be opting for Bitcoin. This bold decision will prove to be a great one by the end of this decade.
CEOs who have missed this opportunity will be kicking themselves. For example, Apple, whose market cap is now $2.150 billion, has something like $200 billion in cash reserves.
Yet Apple still doesn’t own any Bitcoin.
If the company led by Tim Cook doesn’t quickly open its eyes by deciding to include Bitcoin in its cash reserve strategy, it is likely to regret it bitterly by the end of this decade.
The same will be true for many other major companies. A major revolution is underway with Bitcoin. Everything is accelerating sharply, and those who choose to stay on the station platform while the train is about to leave will be the big losers in the future.
It’s up to you to choose whether to board or stay on the platform.