Should Everyone Have Some Bitcoin On Their Balance Sheet
(Edited)
Tesla purchased Bitcoin in January of this year, By the end of the quarter, their $1.5 billion purchase had grown to $2.6 billion. They had nearly $2.5 billion on their balance sheet at FMV as well as selling 10% for a $100M+ profit.
In this video I discuss whether every individual and company ought to follow this same model. Why should everyone hold some Bitcoin? Is this a prudent move?
▶️ 3Speak
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Honestly, I think crypto has always been about self-fulling prophecies... ie, if everyone believes the price of something is about to go up, they buy in and it goes up... if every company parks their spare cash into Bitcoin, then the liquidity increases (so they can access it quickly if needbe) and it'll be an appreciating asset (always good on the balance sheet). Unfortunately the opposite is also true, and companies who don't or won't react quickly enough might find themselves with an asset less valuable then they bought in if everyone else decides to exit.
Compared to just having cash sit on the sidelines in a bank account though, Bitcoin seems like an obvious winner. Fiat is undoubtedly a depreciating asset.
Agreed.
I would rather hold some BTC than watch my FIAT be printed into nothing.
I agree with you that BTC is a good store of value. I do think the banks are going into the crypto space eventually. I think right now they are just waiting for those BTC ETFs and one of those large banks jump in to justify other corporation's reason to enter.
I really do wonder how many BTC has been lost forever but 4 million BTC lost due to keys and hard drive failures is a lot.
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Yes, especially taking into account/considering the fact that only 21 million Bitcoin can be mined in total.
The interesting is the fact that ten years ago almost no one wanted Bitcoin, making Bitcoin almost worthless, nowadays almost everyone wants some, but most of them cannot afford it, because it became more expensive even than gold.
Just wait until a company losses a lot of bitcoin due to some silly mistakes, that will make some waves :))
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I sold all my Bitcoins, and I had regrets. Might buy on the dip.
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Would you recommend putting your bitcoin in a btcb-bnb farm on cub defi to earn interest, or is it better to put in a cold storage for safe keeping?
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Summary:
In this video, the speaker discusses the concept of Bitcoin as a base asset, prompted by the news that Tesla's Bitcoin holding had increased in value significantly. He highlights how various companies are starting to view Bitcoin as a fundamental part of their asset portfolios. The potential long-term value of Bitcoin, its scarcity, and the increasing interest from corporate and government entities are emphasized. The speaker suggests that individuals should consider investing in Bitcoin as it may eventually end up predominantly held by corporations and government-related entities, potentially leading to higher prices over time.
Detailed Article:
The episode opens with the speaker reflecting on Tesla's substantial gains from their Bitcoin investment, underlining how the value of Bitcoin as a base asset is gaining traction among corporations. The speaker cites Michael Saylor's firm commitment to Bitcoin and notes that while some companies like a gaming company have invested a small portion of their cash reserves, larger entities may follow suit. He questions whether individuals should adopt a similar approach given the increasing institutional interest in Bitcoin.
The discussion delves into Bitcoin's store of value, with the speaker likening it to digital gold but emphasizing its potential for greater appreciation over time due to its scarcity. He highlights the dwindling number of available Bitcoins, with estimates suggesting that a significant portion of the mined coins may have been lost, thus reducing the actual supply.
The speaker touches upon the potential involvement of sovereign wealth funds and central banks in Bitcoin, drawing parallels with historical gold investments by central banks. He speculates on the impact of these institutional players entering the Bitcoin market, considering their access to significant capital.
Furthermore, the speaker predicts a transitional phase where existing systems vie with emerging network-based paradigms, likening it to the music industry's struggle with digital disruptions like Napster. He foresees a decade or more of coexistence between the old and new systems, with Bitcoin and cryptocurrencies serving as a bridge to the future digital economy.
The conversation shifts towards the need for individuals to invest in Bitcoin to capitalize on its future growth potential, especially as larger entities increasingly enter the market. The speaker suggests profiting from Bitcoin's trajectory while acknowledging its evolving nature and the need to adapt investment strategies accordingly.
In conclusion, the speaker underscores the evolving landscape of Bitcoin, urging individuals to consider incorporating it into their investment portfolios before it becomes predominantly owned by corporations and governmental entities. By capitalizing on Bitcoin's rising value amid increasing institutional interest, individuals can potentially generate profits to support other ventures they are passionate about.