Are You Ready for Apple, Amazon, Microsoft, and Google Opting for Bitcoin Now That Elon Musk Is In?
You should because all is possible now.
|Sylvain Saurel||Feb 9||2|
Everyone had been waiting for this for several weeks. And on February 8, 2021, the big news came: Tesla purchased $1.5 billion worth of Bitcoin to adopt a strategy that is based on MicroStrategy's Treasury Reserve Policy.
While MicroStrategy's entry into the Bitcoin world had already made a lot of noise, with Tesla, we are taking it one notch higher. Tesla is simply the fifth most capitalized U.S. company with a market cap of over $800 billion.
Tesla has had a historic year 2020 on all levels. On the stock market, first of all. But not only that, as Elon Musk's electric car company managed to surpass 500,000 cars delivered in one year for the first time in its history. Tesla had $15 billion in cash on hand at the beginning of 2021.
In retrospect, It was inevitable
The strategy followed by Tesla is to put 10% of their cash reserves into Bitcoin. The tweet published by Elon Musk on January 29, 2021, now makes sense:
“In retrospect, It was inevitable.”
Since Tesla didn't give more information about the average price the company bought its BTC, it may have been at that time that Tesla made this dive into the Bitcoin world.
A few days after that, Elon Musk had explained during a conversation on the social network Clubhouse that he was a great Bitcoin supporter and that he regretted not having bought much more 8 years ago. As I often say, it's never too late to buy Bitcoin. Today is a perfect time to buy Bitcoin. Elon Musk and Tesla just gave us the perfect demonstration.
Now that a company of Tesla's size has decided to opt for Bitcoin, anything is possible. It will accelerate the digital transformation of companies' balance sheets.
The soaring price of Bitcoin that we have seen since yesterday is nothing compared to what is expected in the months and years to come. Thus, the new $48K All-Time High (ATH) will soon be beaten again. It's only a matter of time now. My prediction of a Bitcoin with a price of at least $100K by the end of 2021 would even end up becoming conservative at the rate at which the adoption of Bitcoin by large companies is progressing.
Apple could be next on the list
For let's not fool ourselves. Now that Tesla is in the world of Bitcoin, all the big companies that were present at the Bitcoin event on February 2 and 3, 2021 can take action at any time. Those who weren't there as well. No one is insensitive to the fact that Bitcoin is becoming the best store of value. A 2.0 gold that is much better suited to the digital world we live in.
In the aftermath of the announcement of Tesla's entry into Bitcoin, a crazy rumor has emerged: Apple would be next on the list. The rumor was about a $5B purchase worth of Bitcoin. This huge figure finally represents "only" 2.6% of the $192 billion that Apple has in its cash reserve.
At first glance, this rumor may seem surprising. Indeed, Warren Buffett is one of Apple's biggest shareholders. However, Warren Buffett remains one of the fiercest opponents of Bitcoin, which he continues to describe constantly as "Rat poison squared". Seeing Apple buying Bitcoin could therefore displease Warren Buffett. Nevertheless, when it comes to money, we should never swear by anything.
Besides, Apple would have a lot to gain from entering the Bitcoin world. First of all, by protecting 2.6% of its cash reserve from the ravages of the great monetary inflation we are currently experiencing. Secondly, by following the same strategy as Tesla, which will soon accept Bitcoin payments for its cars.
Apple could accept payments in Bitcoin, but even better integrate Bitcoin into its Apple Pay payment solution. Apple could even consider developing a secure crypto wallet directly in its next iPhones. This would be a guaranteed success.
If it's not Apple, another member of GAFAM will take action
If Apple isn't the next one to take action, it might be Amazon. Jeff Bezos has just announced that he will step down as CEO at the end of the first half of 2021. His announced replacement, Andy Jassy, has in the past shown much more interest in the cryptocurrency world than Jeff Bezos. If he is not a Bitcoin advocate, he has a genuine interest in this new world.
Andy Jassy might find it interesting to protect a small portion of the $71 billion that Amazon has in cash reserves.
Microsoft and Google come next. The company led by Satya Nadella has a cash reserve of 137 billion dollars and has already in the past shown its interest in the cryptocurrency world with different initiatives. A greater commitment to Bitcoin is possible.
As for Google, the cash reserve is also phenomenal, reaching $121 billion. Google has never really taken a stand for or against Bitcoin. It is therefore hard to imagine that the online search giant would be the first among the GAFAM to take action.
In any case, you can be sure that the coming months will be full of surprises. Now that a company the size of Tesla has taken action, Bitcoin is inside the heads of the treasurers of America's largest companies. Everyone will want to take advantage of Bitcoin's growth in the months and years to come. As I often say, it is only a matter of time, because the success of Bitcoin is now inevitable.
The only shadow in the picture for me is to see Elon Musk continuing to tweet constantly about the Dogecoin which is nothing more than a Sh*tcoin. His attitude leads many of his followers to believe that this big joke has a future. In reality, Dogecoin has no future. Elon Musk would do well to stop tweeting such messages to his 46 million followers:
Unfortunately, many people take this strong support from Elon Musk for Dogecoin as something serious. To all these people, I have only one piece of advice to give: don't blindly follow the advice of influencers even if they are called Elon Musk.
Form your own opinion and make your own decisions. If you do that, you will make the same choice as Tesla did: you will buy Bitcoin to protect your future regarding money. This choice will soon be made by many other major companies.
Hold on, because the next few months will be phenomenal for Bitcoin.
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