This reminds me of Roger Bannister and his historic sub 4 minute mile run. That is why it’s very likely that many private and public companies with huge piles of cash reserves will follow Microstrategy’s Bitcoin strategy.

Now corporations know that it’s possible to invest in Bitcoin and get a legal and accounting stamp of approval. This decision became an important stamp of institutional approval of the top crypto’s credentials as a mature, safe-haven asset.Ī month ago Square, an online payments giant (founded by Jack Dorcey, the CEO of Twitter) followed suit and invested $50 million in Bitcoin. In August 2020 the first publicly traded company, Microstrategy, made Bitcoin its primary reserve asset to hedge against fiat inflation. An opposite dynamic was evident during the 20 tops. In 2020, nearly 500,000 Bitcoin have left crypto exchanges, suggesting a rise in custody over profit-booking. This means that investors buy Bitcoin and then they transfer it to their offline, secure wallets for long-term holding. The best proof of that is that Bitcoin is currently leaving exchanges in record amounts. They will hold their Bitcoin for the long run. These people are not there for the quick buck. This bull run is led by so called “smart money”: wealthy investors, institutions and corporations. And retail investors are still on the sidelines. Back then you had retail investors and speculators driving the price up to the stratosphere … and then it all crushed down.īut this time there is no media hype.

One of the reasons is that this bull run is different compared to the 2017 bull run. And I think that there is a good chance this powerful growth will continue in 2021. Bitcoin and the crypto market are by far the best performing assets of 2020.

The next big thing after bitcoin