Cryptocurrency Information Bureau News: Bitcoin investment strategy! Mercurity Fintech raises $8 million. Keep an eye on digital assets. #Bitcoin #CryptocurrencyNews #FinancialTechnology
Video explanation
What is Bitcoin? That company is investing a huge amount! John will explain it in an easy-to-understand way for beginners!
Hello! I'm John, your blockchain commentator. I've just heard some news that sounds a bit complicated. "A company called Mercury Fintech is preparing to buy Bitcoin for a whopping $8 million!" What is $8 million in Japanese yen? Well, it's roughly1200 million yen or more?! (When calculated at 1 yen to the dollar) That's a huge amount!
If you're wondering, "Fintech? Bitcoin? What's that all about?", don't worry! Today, John will break down this news for everyone to understand.
What kind of company is Mercury Fintech?
First, let's talk about the company that is the subject of this news, Mercurity Fintech Holding Inc.
This company is described as a "digital finance company." That's a bit of a difficult term. To put it simply,A company that uses the Internet and the latest technology (IT) to provide new financial services and develop the systems required for them.The word "Fintech" itself is a combination of "Finance" and "Technology."
In particular, Mercurity is focusing on "creating a financial infrastructure (the basic system) based on blockchain technology."
Have you ever heard of the word "blockchain"?A technology that puts transaction records into boxes called "blocks," connects them like a chain, and allows everyone to monitor and manage them.It is said to be very safe and highly transparent because it is very difficult to secretly rewrite information once it has been recorded. This technology is used for things like money transactions over the Internet.
By the way, this company is listed on the US stock market called Nasdaq (Nasdaq is one of the major stock markets in the US, where many new technology companies are listed). The fact that the company's name is on there means that it is a company that has a certain degree of recognition.
$8 million to turn Bitcoin into a "corporate piggy bank"?
So, what is Mercury trying to do? According to the article, the company "plans to raise $8 million (more than 1200 billion yen!) to establish a long-term treasury reserve for Bitcoin."
Here come some more difficult words! Let's take a look at them one by one.
- Bitcoin: Many of you may have heard of this! It is one of the world's first and most famous "digital assets (also called crypto assets. They are things that have value like money or stocks that are traded over the Internet)." It is not issued or managed by a specific country or bank, but can be traded directly between individuals over the Internet. Think of it as a new form of money.
- Treasury Reserve: This is "money or something of value" that a company saves for the future. In Japanese companies, it may be similar to internal reserves, cash or deposits in a safe, or even gold. Mercury is thinking of putting "Bitcoin" in this "company piggy bank" for the long term, instead of Japanese yen or US dollars.
In other words, Mercury is"Bitcoin may become even more valuable in the future, so let's keep it as an important asset for the company!" They are trying to raise a huge amount of money for this., that's what it means.
Why does a company own Bitcoin? What is its purpose?
You may be wondering, "But why would a company hold Bitcoin? Isn't it dangerous?" Indeed, Bitcoin is known for its large price fluctuations. Nevertheless, there are several reasons why a company would want to hold Bitcoin.
The article states that this is "part of incorporating digital assets into the company's financial strategy."
"Financial Strategy"This is an important plan for how a company will increase, protect, and use its own money. The plan is to include digital assets (in this case, Bitcoin) in the plan.
Specifically, your goals might be to:
- Expectations of future value increases：Maybe they think Bitcoin will become more valuable in the future, and if they buy it now, it could bring big profits to the company in the future.
- Adapting to the new financial system：As the world becomes increasingly digitalized, the form of money may also change. Perhaps they believe that digital assets such as Bitcoin will play an important role in the future financial system and are preparing for this.
- Diversify with other assets: By splitting the company's assets into new types of assets such as Bitcoin, rather than just cash and stocks, it may be possible to reduce the risk of one of them declining in value. (Don't put all your eggs in one basket!)
- A progressive corporate image:As a company that deals with blockchain technology, holding Bitcoin ourselves could be a way to send the message, "We are actively working on new technologies!"
Of course, these are just possible reasons, and the company hasn't officially said everything, but the fact that a big company is willing to put this much money into Bitcoin could be a sign of something big changing.
Does this news have anything to do with us? What we can see from this news
You might be thinking, "I get that big companies are buying Bitcoin, but what does that have to do with our everyday lives?"
While it may not directly change anything right away, news like this does reveal some important things.
- Digital assets gain prominenceBitcoin and other digital assets, which were previously seen as just for a select few tech-savvy people, are gradually attracting attention from larger companies.
- Is it time for a change in the financial world?：It may be a little surprising that a company would choose Bitcoin as a way to hold money, given conventional wisdom. This may indicate the possibility that the world of money and finance will undergo major changes in the future.
That being said, there is no need to rush and think, "I have to buy Bitcoin right away!" However, knowing that there are new trends like this may be a little useful in surviving the coming era.
Message from John
Well, even so, $8 million is quite surprising! A few years ago, it may have been unthinkable for a company to hold Bitcoin as an asset on such a large scale. This may be evidence that blockchain technology and digital assets are gradually being accepted and adopted by society. I will keep an eye on the news in this field from now on!
This article is based on the following original articles and is summarized from the author's perspective:
Mercurity Fintech to Raise $800 Million for Bitcoin
Treasury