When Microstrategy announced its plans to buy bitcoin and hold it as a store of value, the market immediately exploded with mixed reactions. Some called it the beginning of a massive institutional migration path towards decentralized finance and that this would finally take bitcoin to the moon by giving it the necessary momentum. Others called it crazy or insane, as Michael Saylor's decision would soon bankrupt his company, because cryptocurrencies are very unstable due to their high volatility and therefore it is very risky to do business that way.
But be that as it may, MicroStrategy took the risks and ignored all the bad comments from the skeptics, and it is good that he did so because he has achieved many things since then: For example, he has been able to ensure that his company continues to survive the devaluation of the dollar and the bad economy, to give the necessary momentum to the market to take seriously the decision to join the crypto world and finally to achieve millionaire profits. Sure, it is very true that the cryptocurrency market is very unstable and that is why it has earned a bad reputation, but despite the countless proofs of success, there are still negative comments. But all these risks are very well analyzed by the different institutions and companies that have also made the same decision as Saylor.
And although we expected the world's most valuable companies to also join the crypto world, the truth is that so far TESLA has been the only one of the top 10 companies with the largest market capitalization to take the leap and also decided to invest $1.5 billion to acquire bitcoin as a hedge fund. But even though the other largest companies by market capitalization have not yet wanted to enter, hundreds of companies all over the world, including in China, have.
But despite the fact that in the past, the Chinese government was persecuting and strongly prohibiting cryptocurrencies, now we are seeing how they have gradually changed their position, by allowing companies to invest in cryptoassets in their country. For example Meitu a mobile application company has decided to invest $40 million dollars in BTC and ETH. But before I go on to analyze why this is so important and significant for everyone, I wanted to mention what meitu is and what exactly they do.
Meitu (The app): is an image editing software that provides tools for editing photos: filters, retouching, collage, scenes, photo frames and decorations, etc. It is very popular in China, Hong Kong and Taiwan, although it is also available for the rest of the world on Google Play and App Store.
Meitu (The company): It is a Chinese company focused on the development of artificial intelligence for mobile applications, you could say it is the Asian counterpart of instagram but with a catalog for everything in different apps.
The $40 million purchase is part of a cryptocurrency investment plan previously approved by the board of directors, who decided to invest in the top two cryptocurrencies by market capitalization at this time, believing that they "should enhance long-term shareholder value. But they also have well thought-out reasons, as bitcoin will be used as an alternative store of value, and Meitu even believes that bitcoin could be a superior form of value to other stores of value, such as real estate, precious stones and gold.
While ETH will be the gateway for Dapps running on the ehtereum blockchain, because the funds in ETH that the company will have could serve, from their point of view, as a "gas reserve" for their potential dApps or as a way to invest in other projects that they find interesting, since Meitu is focused on developing applications, the idea of integrating the use of blockchains to their business would suit them very well. Since identifying suitable blockchain-based projects abroad for potential investment. Because as we have seen, there is currently a huge exploitation of decentralized projects that are having a huge adoption among users.
**Why is Meitu's investment of Bitcoin and Ether so smart and wise?
Apart from opening a way for Asian companies to invest in digital assets in the same way, there is another reason (in my opinion) why Meitu's purchase may be the start of something bigger. Imagine, downloading a photo retouching, video editing, collage, etc. app. And that allows you to generate tokens for using the application and exchange them for fiat money, invest them or to pay for some app and application improvements that are premium.
Well that would give a big boost to the way in which applications are developed that cover other aspects of daily life or focus on more varied topics. Since the current market of applications is based mainly on copying the success and thus without much effort to gather a user base that consume a certain application. As was the case with Snapchat, which implemented a novel function that was quickly copied by many developers.
Therefore, if Meitu made its applications based on the ethereum blockchain, and the competition or hundreds of developers see the great success of making an app based on the blockchain, this would also motivate hundreds of developers to follow the same pattern and little by little would be generalizing the massive adoption, since we -the consumers- would be using the apps we usually use but with the only difference that they would be based on the blockchain.
But What do you think of the open use that companies can give to blockchain and cryptocurrencies? Let me know your thoughts in the comments.