August 11, 2020, will remain an essential date in bitcoin history. It marks the day that America’s major corporations pushed bitcoin adoption.
Michael J. Sailor, CEO of MicroStrategy, announced that his company is making Bitcoin its main reserve item in a treasure trove. After reviewing at length the various options for MicroStrategy, from gold to bonds, Michael J. Sailor concluded that Bitcoin is the best long-term hedge investment against the high monetary inflation we are experiencing today.
A Secure Future for Bitcoin
After more than eleven years, Bitcoin offers enough security to be considered the first choice over gold. Bitcoin is the safest decentralized network in the world. Security has never gotten compromised because Bitcoin has never got hacked.
This security continues to increase, as evidenced by the steady increase in Bitcoin’s hash rate since its inception. The difficulty of extracting new blocks on the Bitcoin blockchain continues to grow.
The Bitcoin network is 19,298,087,186,262 times safer than when it started. To attack it, one would have to control 51% of the hash rate power and spend so much money that it is not financially sustainable.
Hitting $1Million Easier Than Falling to Zero
Everything changes for Bitcoin in 2020. Currently, the market cap is over $ 200 billion. The chances that the Bitcoin price will hit zero in the future are practically non-existent. On the other hand, the cost’s events, reaching millions of dollars, continue to increase.
The principles of the law of supply and demand prevent this from happening. The collection of new bitcoins continues to decline. In contrast, demand will continue to increase in the coming months. Bitcoin meets a vast need that will arise in the coming years: to protect one’s wealth in a censorship-resistant way over time.
Endless US dollar inflation, which will continue to devalue a currency that has lost more than 85% of its value since 1971, also contributes.
Bitcoin Adoption by American Companies
More and more publicly traded American companies are starting to buy Bitcoins. According to bitcoin treasuries.org, companies listed elsewhere in the world have already begun to buy Bitcoin in recent months.
MicroStrategy’s stock base shows that significant financial asset managers are already indirectly involved in Bitcoin. MicroStrategy is currently leading the way for other companies to follow. In total, MicroStrategy holds 38,250 BTC, which is equivalent to the US $ 425 million, including fees. Hence, MicroStrategy owns 0.51% of the circulating bitcoin supply.
In the months and years to come, you can expect more large companies to join in on the Bitcoin rush. By the end of 2019, companies such as Microsoft, Alphabet, and Apple had more than $ 100 billion in cash reserves. Behind it, Facebook, Amazon, and Oracle have more than $ 30 billion in funds.