Over the past few days, a handful of companies have reportedly converted some of their cash into Bitcoin. They mentioned that they offer better alternatives to cash in their savings certificates. Many have become negative as interest earnings on cash in banks have come down in the last few years. However, it is most negative when adjusted for inflation. This may become a common trend. Especially after dealing with Covid-19 Panpanic. Governments are injecting it into the global economy by generating large amounts of cash from their “thin air” reserves. Which would further reduce Fiat’s purchasing power.
Now, it’s interesting to think about what the markets could do if all companies put one percent of their cash in the hands of Bitcoin. For example, Apple could buy য়ে 2 billion worth of bitcoin. And that would represent only one percent of their total cash on hand, which is currently more than 200 200 billion. Google has 100 billion, Microsoft has another 150 billion. One percent of the total cash (about 5 billion) of the three companies converted to Bitcoin will represent about 3% of the current market cap of BTC. Keep in mind, however, that most bitcoins are not for sale at these prices.
Then there are the funds to consider and the largest of them if BlackRock decides to keep 1% of their investment in Bitcoin. However, it will be about 65 65 billion or about 25% of the total bitcoin market cap. It is using one percent of their funds. How much would the price rise if bitcoin was injected with billions of new coins, where the majority are currently confined to cold storage?
Companies that have taken a step now are now looking at storage quality. They’re probably the most recent recent to come in front of bigger players and if they reach out. But they are going to be tough.
But what is happening is that crypto economics should not be just for the mainstream. At present, the broken system has become an economic infrastructure to replace the broken system. This is the value transfer process that has been going from bottom to top for years. But now the forged economy is starting to fork over itself and the blockchains.
When an organization transfers their reserves to an asset, they must increase that reserve. This can be done through earnings and conversions, or it can be done through earnings alone. That is, deduct them from their cash reserves without effectively following the intermediary procedures that are in place. They can start business directly in the chain and earn in a cryptocurrency. As much as it will happen. That much will happen.
Values are transformed into chains as they begin and are transformed into more flexible and mobile resource classes. This means that the traditional system will basically release inflation into the economy. Will accelerate the process of death and fall. Not only that. Companies create cryptocurrency values instead of going through intermediate central currencies. They will constantly reduce the amount of fiat and make it increasingly unstable. More organizations and people will run to seek financially safe haven. And with limited limited actual supplies of gold and people don’t believe in ownership “on paper”. They will look for something that they can own and trust.
This creates a very big problem for governments because their currencies are slowly being wasted and what is being used is a global digital currency (or large set of interchangeable currencies) that is not owned or controlled by any single authority. This effectively hamstrings a large amount of their current activity and instead of being able to automatically extract the value they want. They are going to ask for it very nicely. Governments have so much control because they obstruct the flow of prices. But the cows have started to move their milk to the green pastures.
Although I don’t think it’s going to be an overnight tidal wave move. Groundswell is building momentum in the far depths and things are starting to move. When a market breaks down. Investors want to exit as quickly as possible to maintain its maximum value and transfer to an asset that can preserve that value as soon as possible. However, due to the congestion, the storage vehicle will be pressed upwards to add value to those who were first transferred.
Which means it's about to be the most delusional time of the year, as well. Get out of Fiat early, get into Bitcoin early. If this happens, there will be a crash of markets with Fiat values and unprecedented proportions because investors will not return, unlike previous crises. They will leave the car completely - and leave it burning debris next to the chain.
People have quite a misconception about the rich and corporations that only care about money. Because they don't care about money at all. What they think is money, not happiness, strength and security. However, if the purchasing power of any currency, including the demand and demand for that currency, gradually shifts from fiat and blockchains, the rich will reduce its use as quickly as possible. Because it no longer satisfies their need for strength and protection. They don't care if they have dolls, rubles, gold, bitcoin or chicken feathers as long as they have the ability to buy.
What we are slowly seeing is the depreciation of the currency, which becomes ridiculous when inflation or for other reasons when abnormalities do not occur. Usually it is the same authority that replaces the old with the new. Thus, they hold the reins. If companies start going to Bitcoin, the reins are broken. Fiat coins have become obsolete in a way that has never happened before.
I'm predicting that this push will get stronger. Because no government wants to lose control over such a thing. Through which they can control their people through a centralized economy of rewards and punishments. Where they are judges and julty.