As investors we're often told not to be too "euphoric" or complacent when our investments or outlooks start to play out, and to always remain rational. However, it's hard not to be engulfed with excitement with the amount of positive news in October alone, and looking at 2021, there is even greater reason to be optimistic! Bitcoin hodlers - its been a real rollercoaster and you deserve every ounce of this optimism!
Developments in October 2020
1. Square purchases $50 million dollars of Bitcoin
In the closing segment of Michael Saylor's (CEO of MicroStrategy - the first publicly listed company to purchase Bitcoin) podcast on the Pomp podcast, Michael discussed the possibility of other listed companies soon exploring reallocating a portion of their reserves into Bitcoin - particularly with an ode to Jack Dorsey of Square and Twitter. Within weeks, that has already happened. Although Square's purchase is considerably smaller than MicroStrategy's, they now represent the second publicly listed company to disclose an official holding of Bitcoin as part of its assets (view Square's whitepaper here). We think this might be the start of a global shift of assets into Bitcoin as an inflationary hedge, which would be massively bullish for Bitcoin. BitcoinTreasuries.org is a public archive recently created to track institutional holdings of Bitcoin. In this archive, you can be informed of the list of companies out there with Bitcoin holdings.
2. PayPal announces support for Cryptocurrencies
PayPal has announced that it would now be supporting 4 cryptocurrencies in it's ecosystem, namely - Bitcoin, Ethereum, Bitcoin Cash and Litecoin. It is MINDBLOWING how bullish this is and how little traction this is gaining in mainstream media. There is now an additional 346 million PayPal users and merchants having the ability to buy, sell and accept cryptocurrencies like Bitcoin. Traditionally, Bitcoin has not been the most accessible or user-friendly investment. Potential investors have to learn about Bitcoin exchanges, deposit money into a company they have never heard of previously to buy Bitcoin. With PayPal now involved, millions of it's users can now access Bitcoin on an already trusted platform - a huge step for accessibility and adoption. One considerable caveat is that at this point of time is that PayPal's cryptocurrency function does not yet support transferring cryptocurrencies outside of the PayPal ecosystem, which is still a significant piece of the puzzle missing for complete adoption and support. However, one must thing is this a huge step (or two....) in the right direction. Read PayPal's official announcement here.
3. Paul Tudor Jones now likes Bitcoin "even more"
Here's a tip for anyone interested in being a successfully investor. When a Wall Street legend and guru like Paul Tudor Jones (PTJ) speaks, it generally isn't a bad idea to listen.
One of the earliest Bitcoin adopters in Wall Street, PTJ disclosed that he add a small percentage of Bitcoin into his portfolio sometime in Mid-June (we wrote about it here). But now, in light the continuing threat of hyperinflation globally, and after learning more about the technical aspects of Bitcoin and the development behind the scene, PTJ likes Bitcoin even more - saying that investing in Bitcoin today is a bet on human ingenuity and likened it to investing in Apple or Google in it's early days. PTJ explains his thoughts extremely clearly in a recent interview with CNBC, and I shall make no attempt to condense it further. It is a great 4 minute quick listen!