Source: Bitcoin Magazine
Things are really starting to heat up in the cryptocurrency community! Bitcoin recently reached a new all time high, and some of the worlds largest corporations, such as PayPal, have announced their move into the crypto space. The previous bull run back in December 2017, when the price of Bitcoin soared to almost $20,000 USD, was predominantly fueled by retail investors. Media hype soared alongside the price and Google search interest in “Bitcoin” spiked.
Five-year chart Google search Interest in “Bitcoin.” Source: Google
There’s certainly a different feeling this time round. Although Bitcoin just broke it’s previous all time high, the media and retail interest is incomparable. Instead, it seems the price action is coming from both Bitcoins halving and a number of institutional investors moving into the space.
What does this mean for the price of Bitcoin and cryptocurrency in general?
BIG PLAYERS JOIN THE FUN
MicroStrategy CEO Michael Saylor recently announced his company’s third Bitcoin purchase, 2,574 bitcoins for $50 million, bringing their treasury holdings to approximately 40,824 bitcoins. MicroStrategy first bought $250 million worth of BTC back in August 2020, followed by an additional $175 million worth one month later. He also stated they plan to sell up to $400 million in a convertible senior notes offering to fund more bitcoin allocations.
Back in 2013 the CEO had publicly dissed Bitcoin, forecasting a grim future for the asset.
Fast-forward to 2020 and both Saylor and his company have recognised the value in Bitcoin and it’s likelihood to become the currency of the future. Saylor stated he will hold his company’s Bitcoin for 100 years, and has no intention of selling it: “This is not a speculation, nor a hedge. It is a deliberate corporate strategy to adopt the Bitcoin Standard.”
It seems other major players have too recognised it’s value. PayPal recently announced crypto trading and payments via their platform, and Square invested $50 million of the company's balance sheet into BTC. Square’s Chief Financial Office, Amrita Ahuja stated:
“We believe that Bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
WHAT DOES THIS MEAN FOR CRYPTO?
These recent announcements could help to solve today’s biggest problem with digital money - it’s adoption. PayPal alone has well over 300 million active accounts worldwide, so it’s involvement with cryptocurrency has the potential to hugely increase the number of people that use it. Not to mention it provides a fast and convenient way for people to buy and spend crypto, which is integral to the daily adoption of cryptocurrency. Soon you will be able to use your cryptocurrency to buy your morning coffee at your local cafe!
THE PRICE OF BITCOIN
If Bitcoin is reaching all time highs without support from mainstream media and retail investors, what will happen when that comes? If 2017 is anything to go by, the current bull cycle may only just be getting started!
The fact that globally respected and established companies are seeing the value in Bitcoin can only further validate it’s placing as the digital currency of the future. Big things are coming in 2021 and we can’t wait to see what the future holds!