Bitcoin Above $50k - Who Might Invest Into BTC Now?

Bitcoin Above $50k - Who Might Invest Into BTC Now?

2021-02-17 | Robin Williams

Bitcoin Above $50k - Who Might Invest Into BTC Now?

A small scale study of monetary executives has revealed that 5% of firms intend to invest in Bitcoin [BTC] as a company asset this year, with an extra 11% stating they might do so by 2024. The survey conducted by Gartner comes on the rear of stories that Tesla invested 8%, or $1.5 Bln of its cash reserve, into Bitcoin. MicroStrategy Inc. who has also invested large sums into the token announced a $600 Mln bond offering today on Tuesday with the intent of using the proceeds to accumulate additional Bitcoins. The 77 respondents, along with 50 CFOs among other executives, revealed highly differing views supporting the industry the corporate works in. The technology sector revealed the foremost attraction towards Bitcoin with 50% of respondents from this industry anticipating holding the cryptocurrency within the future, with no difference supporting the organization’s size.Although the bulk of these surveyed [84%] stated their main concerns about investing revolves around the financial risk that comes from Bitcoin’s high volatility, it also appears many are adopting a wait and see approach a the landscape develops. More than 70% stated that one among the top things they need to understand is what others do with Bitcoin. Almost the similar number want to listen to more from regulators on the interest aid in their understanding of the inherent risks with holding the virtual asset. Gartner chief of research Alexander Bant revealed that, “Finance leaders who are tasked with ensuring financial stability aren't susceptible to making speculative leaps into anonymous territory,” adding:
“It’s important to recollect this is often a nascent phenomenon within the long timeline of corporate assets. Finance leaders who are tasked with ensuring financial stability aren't susceptible to making speculative leaps into the anonymous territory.”
Other concerns expressed embody board risk aversion [39%], slow adoption as an accepted sort of payment or exchange [38%], lack of understanding [30%], cybersecurity risks [25%], and sophisticated accounting treatment [18%]. While it’s difficult to draw statistically significant results from such alittle samplesize, it's worth noting how hiked corporate investment would impact Bitcoin. Within the last half of last time, firms outside of the financial and utility sectors in the S&P Global held approximately $2 trillion in cash reserves. This is often presently over double Bitcoin’s present market cap, and intrinsicallythere's many money available to flow into Bitcoin. The technology sector alone could have a min of $640 Bln to take a position - though most businesses thus far have allocated only alittle percentage towards Bitcoin. Investment firm ARK Invest suggested earlier this month that if “all S&P 500 businesses were to allocate 1% of their cash” to BTC, the digital asset’s price would increase by roughly $40k, driving the worth to solely shy of $90k. Should the company investments rise to 10% of money reserves, ARK claims Bitcoin will increase by $400k. The study represents a stark hike of awareness from Gartner's 2018 survey within which solely 66% of CIOs even knew about the blockchain technology.

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