Cryptocurrency Information Bureau News: Belgravia Hartford Capital purchases Bitcoin for the first time! Opening the way to the future with a new investment strategy! #Bitcoin #CryptocurrencyNews #InvestmentStrategy
Video explanation
An investment company buys Bitcoin for the first time! What does this mean? We'll explain it in an easy-to-understand way for beginners!
Hello! I'm John, your blockchain guide. Recently, I saw a story in overseas news that "An investment company bought Bitcoin for the first time!" This may not have an immediate impact on our lives, but it's a rather interesting development when you think about the future of money and investment. Today, I would like to talk about this news in an easy-to-understand way, especially for beginners who are wondering "What is Bitcoin?" or "Blockchain seems difficult..."
First of all, what kind of news is this?
The company in question this time is "Belgravia Hartford Capital." This company is an "investment holding company" that specializes in putting money into various companies (investment) and increasing their own money (asset management), so to speak, they are "professionals in money."
The Belgravia companyBought approximately 4.86 Bitcoin (BTC) for roughly $50That's right. In Japanese yen, it's about7750 days ago(When calculated at 1 yen to the dollar) That's a pretty big amount!
What is particularly noteworthy is that this is the company's first Bitcoin purchase. The point is that the company has officially started investing in a new asset that it had not previously dabbled in.
Why is the company using Bitcoin? What is a "financial strategy"?
According to the news, the Bitcoin purchase is part of Belgravia's "financial strategy."
When you hear the term "financial strategy," it sounds like a difficult term. But, to put it simply,A plan for "how to safely protect and wisely increase the company's valuable money (called assets) for the future."That's what I mean.
- For example, when we receive our salary, we tend to save some of it in the bank or buy a small amount in an investment trust (a financial product in which you entrust your money to a professional to manage) for the future.
- The same is true for companies; instead of simply depositing the profits they make from their business and the funds they have in the bank, they invest them in things that are likely to increase in value in the future and diversify their risks (the idea is not to put all their eggs in one basket!).
Until now, the most common places for companies to store surplus funds (money that is not planned to be used immediately) have been bank deposits and government bonds (national bonds: debt certificates issued by the government, considered relatively safe). However, Belgravia has now chosen "Bitcoin" as one of the places to store its money.
This may indicate that Bitcoin is becoming a serious new option for companies to manage their money.
Let's review the basics here! What is "Bitcoin"?
Some of you may be thinking, "I've heard of Bitcoin, but I don't really know much about it..." Don't worry! Here's a quick introduction to Bitcoin.
BitcoinIn a word,"Digital coin (money) that can be used on the Internet"Some of the main features are:
- "Digital Currency" with no substance: It does not have a physical form like the banknotes and coins that we normally use. It is exchanged as data on smartphones and computers.
- "Decentralized" with no specific administrator: Ordinary money (for example, the Japanese Yen) is issued and managed by the country's central bank, the Bank of Japan. However, Bitcoin does not have a central administrator such as a specific country or company. It operates under a slightly unusual system in which it is "managed by everyone." This is called "decentralized."
- Supported by "blockchain" technology: This "collaborative management" system is made possible by a technology called "blockchain." This involves compiling transaction records (such as who sent how much to whom) into units called "blocks," which are then linked together in chronological order to create a chain of records. These records are copied and shared on computers around the world, making it extremely difficult for a single person to commit fraud or secretly rewrite data. It's like"A digital transaction ledger that is monitored by everyone and cannot be tampered with."It's something like that.
- The number of copies to be issued is fixedWhen Bitcoin was first designed, the maximum number of coins that could be issued was set at approximately 2100 million. Just as there is a limited amount of gold buried on earth, Bitcoins do not continue to grow infinitely, so they are sometimes called "digital gold" due to their scarcity.
What are the benefits and precautions for a company to hold Bitcoin?
So, what are the advantages and disadvantages of a company like Belgravia holding Bitcoin as part of its assets?
Potential benefits
- Expectations of future value increase: The price of Bitcoin fluctuates greatly, but there are companies that invest in it with the expectation that its value may increase in the long term. If the value increases, the company's assets will increase.
- Hedging against inflationInflation is when the prices of things in the world rise overall, causing the value of money to fall relative to them. Some people believe that Bitcoin may be an inflation-resistant asset because it has a set issuance limit.
- Diversification of assets (diversified investment): By holding not only traditional assets such as stocks and bonds, but also new types of assets such as Bitcoin, you can expect to diversify your overall risk.
- Adapting to new technologies：Blockchain technology and digital assets have the potential to change the future of the economy and finance. Getting in touch with them early may lead to future business opportunities.
Possible precautions and risks
- The magnitude of price fluctuations (volatility): The price of Bitcoin can rise or fall significantly in a short period of time, which can cause the Company's asset value to be unstable.
- Uncertainty about laws and regulations: Many aspects of the laws and tax rules regarding Bitcoin and other digital assets are still in the process of being developed worldwide and may change in the future.
- The Importance of Security Measures: Because it is a digital asset, there is a non-zero risk of it being stolen through hacking, etc. Of course, if you are a company, you should take very strict security measures, such as asking a company with specialized knowledge to do the work.
- Difficult to understand and manage: Because this is a new technology, specialized knowledge is required to correctly understand and properly manage it.
It seems likely that an investment company like Belgravia has weighed the benefits and risks and made an expert judgment before deciding to make this purchase.
A word from John
This news, that an investment company has purchased Bitcoin as part of its asset management, is quite an interesting move even for ordinary people like us. In the past, Bitcoin was thought of as being mainly for individual investors and some very new technology-sensitive companies, but the fact that traditional investment companies have begun to pay attention to it may be a sign of a big change.
This could be seen as evidence that Bitcoin is gradually increasing its presence in society, evolving from being "a mysterious digital coin that a few people are crazy about" to "one of the legitimate asset options."
Of course, the price of Bitcoin fluctuates greatly, and since it is still a new field, there are good points and also things to be careful about. However, as your guide, John, I would be very happy if this news sparks your interest in "What will the new form of money be like?" and "How will the economy change in the future?" From now on, I will continue to provide you with the latest information without using difficult technical terms as much as possible.
This article is based on the following original articles and is summarized from the author's perspective:
Investment Holding Company Belgravia Hartford Capital Makes
First Bitcoin Purchase as Part of Treasury Strategy