Elon Musk makes a profile update and Bitcoin pump and dumps $6,000+ dollars in a few hours.
This market is TWITCHY to buy Bitcoin but still a lot of investors are on the fence believing current prices are “high”.
There aren’t many alternative gold-like assets at this time of rising need for them (because of all the debt and money creations that are underway and will happen in the future).
Because of what is going on in the world, besides there being a growing need for money or store hold of wealth assets that are limited in supply, there is also a growing need for assets that can be privately held.
We’ve been growing more and more confident that Tesla would jump into utilizing Bitcoin as a treasury reserve asset. Tesla’s cash reserves have been exploding – exponentially growing even as of 2020 with the stock pumping to record highs.
Now it seems inevitable that Tesla will add Bitcoin to its treasury reserves in 2021.
Major U.S. public companies continue jumping into the digital asset space as a hedge against inflation and government regulation.
It isn’t a surprise that Marathon Patent Group is one of the first in 2021 to disclose their new treasury asset allocations into Bitcoin. They have already been significantly involved with Bitcoin mining and other cryptocurrency activities.
To most this $10 million dollar, “small change”, bid into Bitcoin barely raises an eyebrow when MicroStrategy has already purchased over 70,400 Bitcoins PRIOR.
It’s not about the amount – but it shows that MicroStrategy’s “treasury reserve” strategy will include continued buying pressure on Bitcoin for months and years to come.
We don’t really want illicit activity to move to this new technology and in the U.S. and most countries it’s pretty clear that the tax regimes this is property and its not currency. The anti-money laundering and anti-terrorist regimes that you’ve got to keep track of who buys and sells this.
I think its pretty clear in that space.
I think where its less clear, if you wish, is in the investor protection space.
I think guarding against illicit activity, you still have to pay your taxes if you buy and sell this stuff. It’s property and you really can’t fund terrorist or try to promote the dark web or drug trafficking.
Blockchain innovation that we subscribe to Satoshi Nakamoto is a database structure that is more temper resistant, harder to mess with it, but it comes with a cost. Secondly its this concept that you don’t have a central authority or central mediary, but naturally, do you really need the log and a block and consensus between multiple parties. And this question in finance, do we need a native token or currency?”
Office of the Comptroller of the Currency has given “conditional approval” to Anchorage Trust Company (South Dakota) as the first United States, regulated and insured, digital asset bank.
South Dakota is continuing to be a leader for regulation in the digital asset/cryptocurrency financial sector of America. Similar to Wyoming, the state government clearly sees the benefit in being an early adopter of digital assets by opening the regulatory doors for new businesses to bloom.