Institutional investors are consuming bitcoins quickly, and at the time of writing, nearly 3% of the Bitcoin (BTC) in circulation is locked into the long-term assets of these investors.
The data shows that 24 units raised more than 460,500 BTC, equivalent to $ 22 billion at the current bitcoin price.
That figure doesn’t include the 3 million BTC that was always lost, which means there will soon be in short supply if organizations continue with their current purchases, according to Michael Novogratz.
The current list of owners includes MtGox K K, which has around 141,690 BTC ($ 6.6 billion). Next up is Block.one, with an estimated value of 140,000 BTC ($ 6.5 billion). MicroStrategy also owns about 71,000 BTC ($ 3.3 billion) and Tesla bought 38,500 BTC (about $ 1.8 billion) this week.
Analysts now expect that storing Bitcoins in the Treasury will soon become a commercial standard, as there are several technical reasons for viewing Bitcoin as a hedge against inflation.
Firstly, BTC has the last in circulation stock and it simulates a gold store using value. Moreover, there is no way to accelerate the flow of new Bitcoins through additional mining.
Large holders reduce current supply by purchasing large quantities of the market and placing them in cold stores. The long-term ownership culture among most cryptocurrency participants shrinks the already scant supply and creates a vicious cycle.
For informed financial managers, owning a portion of Bitcoin’s treasury provides some regulatory hedge and arbitrage as governments cannot freeze funds.
The surprising thing about Tesla’s decision to buy Bitcoin is the time the decision was made after the price of BTC rose by 250% in four months.
The move this week saw BTC’s market cap exceed Tesla’s, ranking ninth among all traded assets.
In the past, buying bitcoins might have been viewed as an incredibly bold move, but now it makes sense for institutional investors.
With a rough estimate of $ 10 trillion in cash to companies around the world, even a 3% allocation in BTC represents $ 300 billion, which is about a third of Bitcoin’s total cash value.
With no more than 60% of the Bitcoin supply moving in for more than a year, the influx of $ 300 billion is nearly unimaginable for the free-flowing asset of $ 355 billion.
In addition, the number of new BTC miners is 341,640 annually, which is equivalent to only $ 16.3 billion. Thus, it is safe to conclude that the regular placement of BTC in the company’s treasury can be more than double the current bitcoin price.