In recent months, many large companies around the world have started buying large quantities of Bitcoin. It seems that every few days is news about another company that becomes a member of the growing list of Bitcoin investors.
One of the first big names in this space was MicroSstratey, led by the CEO, Michael Saylor. Years ago the company began to buy Bitcoin and since then the share price has risen with an incredible 3,000%. Saylor has said that he believes that other companies will have no other choice than to follow, especially because Bitcoin prices continue to rise.
Why do more companies buy Bitcoin?
As explained by an analyst, It is simple: when a few companies start buying Bitcoin and their share rates rise, other companies will take it up. Soon more companies feel pressure to participate, which pushes the price of Bitcoin even higher. As the price rises, it becomes more expensive for new buyers to enter the market, which creates a hurry to buy before the prices rise further.
New player from Indonesia
A company called Digiasia from Indonesia has just announced its plans to buy $ 100 million in Bitcoin. Although it is not as great as the investments of micro strategy, it is still a huge amount. What is more surprising is that Digiasia is planning to use 50% of his future profit to keep buying Bitcoin. This shows that they are serious to make cryptocurrency an important part of their financial strategy.
More large numbers of other companies
Another company called Metaplanet has also achieved the headlines. At the end of this year they want to build a Bitcoin reserve of 10,000 bitcoins and 21,000 towards the end of next year. They recently revealed that they have already collected more than 6,700 bitcoins – much faster than expected.
The big question now is: with the price of Bitcoin that is expected to rise by the end of this year to around $ 370,000 to $ 500,000, will these companies still be willing to buy more at such high prices? And what happens if Bitcoin hits $ 2.4 million in 2029 or 2030, as some predictions suggest?
What does this mean for ordinary Bitcoin holders?
Every time a company buys thousands of bitcoins, it reduces the number of available coins for everyone else. Some experts have said that one day even millionaires and billionaires are unable to buy a full bitcoin because so much has been removed from the market by large companies.
There is an old idea in the crypto world that owning only 0.28 bitcoin would bring you to the top 1% of Bitcoin holders. At the time, people thought it was a small number. But with companies that pick up huge amounts of Bitcoin, 0.28 BTC is starting to look much more valuable.
Short
More and more companies are buying Bitcoin as a long -term investment. While these companies continue to add to their Bitcoin reserves, it can increase prices and make it more difficult for others to buy in the future. And if Bitcoin reaches the price levels that some experts predict, this will make the small amounts of Bitcoin of regular investors even more valuable.