BTC is closer than ever to becoming a global reserve currency
Editor's Note: This article comes fromGolden Finance, reprinted by Odaily with authorization.
Golden Finance
Golden Finance
Against a backdrop of recession, central bank unconventional fiscal policies, and the ensuing inflation and currency debasement, Bitcoin has proven to be the only standard currency. As a result, more and more companies are choosing to embrace Bitcoin and withdraw from the existing monetary system. The payoff is that they consciously avoided the inevitable catastrophe caused by macro risk. Bitcoin's status as a global reserve currency is slowly taking shape as the consensus becomes more and more confirmed.
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Quantitative change leads to qualitative change (Gradually, Then Suddenly)
To date, a total of 23 companies around the world hold approximately $10.5 billion worth of BTC, accounting for 3.74% of the total Bitcoin supply, including 15 publicly listed companies, 3 private companies, and 5 ETF-based companies. Many see this trend of companies buying and holding bitcoin as an inflection point in bitcoin’s widespread adoption and the first big step on the path to bitcoin becoming a global reserve currency.
List of public and private companies holding Bitcoin. Source: bitcointreasuries.orgbitcoinOne notable company kicking off this trend is MicroStrategy, a Nasdaq-listed business intelligence company. The company bought about $425 million worth of bitcoin between August and September, becoming one of the first public companies in the world to publicly hold bitcoin. MicroStrategy currently claims to own 38,250 BTC, accounting for about 0.182% of the total Bitcoin.
In its original announcement in August, MicroStrategy informed investors that it was changing the company's investment strategy to reflect economic conditions. The company chose bitcoin over the depreciating dollar.
The language used in MicroStrategy's official communiqué is no slouch. During its third-quarter earnings call, the company maintained its decision to convert its key reserve asset, arguing that it would be beneficial for investors
Potential for greater returns than cash. It even promised to buy more bitcoins.
Since going public with its Bitcoin investment, MicroStrategy has identified the pioneering cryptocurrency as a true safe haven, signaling to other companies and organizations around the world that it is worth entering the blue ocean of Bitcoin.
Following in MicroStrategy's footsteps is payment processor Square. Although Square is led by Twitter CEO and bitcoin evangelist Jack Dorsey, Square has found itself behind the curve when it comes to adopting bitcoin as a reserve of assets. This made Square put 1% of its total assets, or about $50 million, into Bitcoin.
“We believe bitcoin has the potential to become a more ubiquitous currency in the future,” said Amrita Ahuja, Square’s chief financial officer. Dorsey agrees that bitcoin will one day become the world’s reserve currency.
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Banks Are Buying Bitcoin
The upshot is that after businesses opt for Bitcoin, central banks will have no choice but to hold Bitcoin as a reserve currency. This is especially true as fiat currencies continue to lose value. Central banks can either shrink back on the sidelines and watch companies profit, or join in.
global reset
In fact, they've already started trying.
Recently, Iran became the first country in the world to utilize Bitcoin at the national level. To counter U.S. sanctions, the Central Bank of Iran plans to use bitcoin to fund international trade, thereby empowering miners to transact directly with the central bank.
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global reset
While the global economic downturn persists, Kristalina Georgieva, managing director of the International Monetary Fund (IMF) in Washington, D.C., has called for a "new Bretton Woods moment".
In a speech on October 15, Georgieva talked about the economic impact of the new crown epidemic and the ensuing debt desperation, in essence arguing for a monetary reset similar to the 1944 Bretton Woods agreement. set up.
