If 10% of the cash on Corporate Balance Sheets moves to Bitcoin, the price would increase by more than $400k

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There is currently more than enough cash sitting on corporate balance sheets to send Bitcoin up another 10x from current levels.

Yesterday we talked about what might happen if S&P 500 companies invested roughly 1% of their cash into bitcoin.

More on that can be seen here btw:

https://hive.blog/hive-167922/@jrcornel/what-if-public-companies-commit-1-of-cash-reserves-to-bitcoin-bitcoin-jumps-by-another-usd40k

The long and short of it was that a 1% allocation would send the price of bitcoin higher by another $40k.

But what if they invested say 10% of their cash?

Based on data compiled by Bloomberg, there is roughly $2.8 trillion cash and cash equivalents sitting on S&P 500 corporate balance sheets.

https://finance.yahoo.com/finance/news/bitcoin-hits-record-mastercard-bny-141004267.html

If we were to see roughly 10% of that move into bitcoin, it would represent an increase in the price of bitcoin by more than $400k.

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(Source: https://hive.blog/hive-167922/@jrcornel/what-if-public-companies-commit-1-of-cash-reserves-to-bitcoin-bitcoin-jumps-by-another-usd40k)

How likely is that to actually happen?

While that certainly sounds exciting, how likely is that to actually happen?

There are many out there quick to say that 10% isn't likely at all, and that even 1% may not be likely as well.

However, while I haven't spoken directly to many of the corporate balance sheet decision makers out there I would say that given the fact that many are being rewarded extremely well right now for taking the leap it's only going to encourage others to follow suit.

And remember, we are talking about an average of 1% or 10% here, if someone like MSTR puts 100% of their cash in, others can not put any and still get us to that 1 or 10% number.

When you really think about it, putting 1% of their cash into something is nothing.

If it goes to zero, they lost 1% of their cash, that's basically a rounding error.

Even 10% isn't that large, though it does start to impact things a bit more.

The other thing I'd mention is that this is solely the S&P 500 companies, it doesn't include Nasdaq companies or Dos companies, or Russell companies.

Plus it only includes public companies!

When you start to think about it like that it starts to look all the more likely that those $400k numbers can be hit with or without 10% of the S&P 500 cash getting involved.

Stay informed my friends.

-Doc

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29 comments
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Oh dang, you are right. That is barely scraping the surface really. I was having a conversation today with someone about Apple putting even 10 Billion into the game. That would be so game changing. Especially given the effect that Apple seems to have on other business and the public in general.

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Yep and $10 billion would only be 5% of their cash hoard... :)

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I know right! Just a drop in the bucket for them. Spent and forgot about just like that.

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I mean honestly I don't see a good reason that a company that generates free cash flow and is sitting on a pile of cash doesn't put a couple percent in bitcoin, sure I am biased, but even looking at it from a non-biased perspective, putting 1% or so in there makes a ton of sense if not just to capture some the euphoria going around.

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Yeah, I hear you. It's crazy to think they would be so overly cautious. They probably generate in a month what they would be investing. Like I said, spent and forgotten about.

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Yep, easily. Eventually they will do it to appease shareholders. "Here we put 2% in bitcoin, now let us run our business again".

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Yeah, for sure. I can totally see the drive coming from the shareholders. I hold some Apple stock. Maybe I should make my voice heard! :)

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Hi
I personally think that the concept of investing 1% of your balance sheet or 1% of your portfolio into Bitcoin is going to be very Big!

I agree that this simple concept may find IRS way into every corporate accounting advisory and financial planners dialogue.

This will blow up the price of Bitcoin and Ethereum.

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Yep, that's the thought process. I suspect the final tally will be something in between those two numbers, something like a 2-3% allocation when it's all said and done for that cash.

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I start to see
the light at the end of the tunnel.
One thing we can do, wait
for their move.
At least we will get our share
in the long run.

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First Elon Musk and then Apple I think this is game changing, these people are really making dent in the universe.

I am looking forward to seeing this but unfortunately I don't have any crypto holding.

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Well AAPL isn't in yet. I suspect they will be the one that catapults bitcoin to $100k when that news breaks a few months from now. :)

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But, that's not the plan.
It should be the plan, but that's not the plan.

The plan is to move much of that cash into XRP.
Its the bankster coin, and their corporate cronies will move the money before the dollar plug is pulled.

And! Unfortunately, the on ramp to bitcoin is really kinda small for all those corporations to move that kind of money.

Also, this will sound kooky, but get out of XRP while its making its second run up. Because the exit ramps will be cut off. Because, it is a bankster coin, and ... something... something like you will only be able to trade within their ecosystem.

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That’s the doomsday scenario and reason people should have some XRP in their bag.
But probability is still low compared to BTC taking over the world. We will see how it unfold anyway, best we can do is be prepared for different scenarios.

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Not talking about doomsday scenario, trying to explain plans that are already in motion, now.

BTC will not so much as take over the world, but it will be how international balances are paid.
I think block chain will take over the world... and inter change swapping will just be seemless (so it will all look like bitcoin)

XRP will fail... Basically, it will become a walled garden... and then become an ignored walled garden, with all the members having all their money, to exchange with each other... but what good is that when all the members are banks (or similar)?

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It's already got major issues with the SEC trying to kill it...

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XRP isn't a bankster coin, it's not even really technically a cryptocurrency. It's a coin that some banks use. I wouldn't touch XRP with a ten foot pole personally. They are moving to bitcoin and not XRP. There have been no filings of companies adding XRP to their balance sheets while there have been dozens now from public companies adding large amounts of bitcoin.

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(Edited)

Sooner or later BITCOIN will count as a Berkshire Hathaway stock

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I would expect Nasdaq companies to be better “informed” and get the flow pumping. 10% might me very high but something 2-5% sounds pretty normal.
Better for us to be in earlier or we will just chase after this rise.

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Yea I think so as well. That is the neat thing about that model, it's just one specific 'group'. There are literally dozens of 'groups' that could bring tremendous buying power into bitcoin. Multiple paths to $400k!

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I think they will do 1% as long as the government doesn't put up a big stink about it. Elon paved the way and I think he legitimized it for a lot of the normies.

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we are in the phase 1 of mass adoption

then more companies will invest in crypto

until 2025, crypto industry will reach 10 trillion dollars which mean 10x from nowadays

my personal advice to anyone is invest in crypto for your wealth and prosperity

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I think Tesla started something big... there will be more investments by big companies in my opinion

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Yep, my thoughts as well. TSLA changed the game. More companies are on the way over the coming months.

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When you start to think about it like that it starts to look all the more likely that those $400k numbers can be hit with or without 10% of the S&P 500 cash getting involved.

That was the best part.

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That would be cool, by this prize of a Satoshi would be crazy :-)
Thanks a lot for sharing your thoughts

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