Square-buys-50-million-in-bitcoin...
https://www.coindesk.com/square-buys-50m-in-bitcoin
https://www.fastcompany.com/90562043/square-buys-50-million-in-bitcoin-in-a-huge-vote-of-confidence-for-cryptocurrency
This news is being reported by everyone.
I saw a dozen different articles in my crypto news feed. Jack Dorsey of Square is now following in the wake of MicroStrategy and adding Bitcoin to the company reserves (targeting 1%).
Now, many might think this isn't a big deal.
$50M is a lot less than the $425M MicroStrategy acquired, and the price of Bitcoin is still fledgling along in the $10k range.
Branding Matters
MicroStrategy is a no-name company with niche branding. Their purchase has gone largely unnoticed by the world. However, when you have a company like SQUARE dropping 50 mill on Bitcoin and CNBC is reporting it, this is a huge deal. Everyone is going to notice.
The market is still trading in EXTREME fear, so this news has no effect on price. However, how many more times does this have to happen before all of the FOMO hits the market all at once in a perfect storm? We've seen this go down time and time again. Fundamentals & Speculation are totally separate until the stars align and big-money players start taking huge risks.
These are not weak hands.
Think MicroStrategy is a weak-hand that might get scared and dump? What about Square? These are the definition of strong-hands. These are professionals, analytical and unemotional. These people are fully willing to take a huge loss knowing those gains will return just like they always do. These are clearly long-term plays and these companies have no intention of gambling on the market. They are programmed to HODL. It's not about timing the market, it's about time in the market.
I can't believe this is happening so fast.
This is truly an unbelievable moment in history. If all this COVID nonsense wasn't going down the Bitcoin FOMO probably would have already started by now. Bitcoin has never been worth more than it is right now.
I wrote this a year ago when speculation was looking pretty sexy (ended up spiking to $13k for summer Bakkt pump/dump). Today Bitcoin speculation is looking magnitudes better than it was back then.
The banking system is on the brink of collapse. Interest rates negative. Threat of bail-ins. Trillions being printed. Velocity of money at all time lows. The writing is on the wall, but the vast majority of the world digs a hole in the sand and chooses to bury their heads instead. LALALALALA I'm not listening!
Conclusion
This is a frightening moment in history. Corporations are signaling to the world that the legacy economy is so broken that they'd rather gamble their precious reserves on one of the most risk-on assets in existence rather than park their hard-earned value in fiat. This is hugely telling coming from organizations whose sole purpose is to make more money and insure their ongoing success into the future.
Companies that do not hold Bitcoin reserves (or enter during the mega-bull run of 2021) are going to find themselves up Shit's Creek without a paddle.
This is not a drill.
Prepare for moon.
Soon™
Return from The dominoes are falling and no one is paying attention. to edicted's Web3 Blog
