Gold transforms into Bitcoin?! British gold mining company makes surprising announcement!
Hello everyone! I'm John, your next-door neighbor and blockchain commentator. I usually bring you the latest, somewhat difficult, technology news, but today I've found some surprising, yet very easy-to-understand news that I'd like to share with you!
It's like modern-day alchemy? Turning gold into Bitcoin!
This time, I would like to talk about a company based in the UK called Bluebird Mining Ventures (hereafter referred to as Bluebird). As the name suggests, this company is a gold mining company that digs up gold from the ground.
Now Bluebird has announced that they will use the money from selling the gold they have mined to buy Bitcoin! That's surprising!
For those of you who are wondering "What is Bitcoin?", here is a simple explanation.
- BitcoinWhat it is: It's like "digital money" that can be used on the Internet. It is not issued or managed by a specific country or bank (this is its main feature!), and it is based on a technology called blockchain (a technology that puts information into boxes called "blocks" and connects them like a chain to record and manage them. Since this record is shared by computers around the world, it is very difficult to tamper with and is said to be a very safe system). This has the advantage that money can be sent directly between individuals or companies without going through a bank, with relatively low fees.
In other words, Bluebird is exchanging the shiny gold it has mined for Bitcoin, a digital asset, in anticipation of its future potential.
Why would you do that? Bitcoin in your company's "wallet"
So why did Bluebird make such a unique decision? According to the article, the company decided to hold Bitcoin as a "treasury reserve asset."
"Financial reserve assets" may sound complicated, but this isImportant money or assets that a company has saved for the futureIt's like a "big piggy bank" for the company. Companies put money and valuables in this piggy bank to strengthen the company, to use it to start new businesses, and to prepare for emergencies such as economic crises. Usually, companies put cash, stocks of other companies, and of course gold in this piggy bank.
Bluebird chose Bitcoin as one of the things to put in this "company piggy bank." This means that they are
- I see it as a promising investment that may increase in value in the future.
- Like gold, it is trusted as a means of storing value (especially since the total amount of Bitcoin issued is fixed, some say it is resistant to inflation (when prices rise and the value of money falls)).
This may be a sign of that. Bitcoin is sometimes called "digital gold," so I feel that there is an interesting connection between the two when gold mining companies are paying attention to it. Gold has long been considered to have stable value, but since the number of Bitcoins issued is limited (the upper limit is set at about 2100 million!), it is sometimes said to have a scarcity value similar to that of gold.
Does this have anything to do with us? It might be something closer to home than you think!
You may be thinking, "Is it not something that has much to do with us that gold mining companies are buying Bitcoin?" But actually, this may have quite a big meaning. Even if you are not an economics expert, there are some interesting points to know.
Key points are as follows:
- Traditional companies also take notice：It may be a sign that even companies with a relatively conservative image, such as those that deal with gold, are beginning to recognize Bitcoin as a valuable asset. This may be evidence that Bitcoin is beginning to be seen as a more solid entity, rather than just a passing fad.
- Improving Bitcoin's reliability?If this kind of movement spreads to other companies, the image of Bitcoin as something only for a select few technology enthusiasts or something that's somehow suspicious may change, and it may become accepted by society as a more common asset, like stocks or real estate.
- New investment optionsIf it becomes commonplace for companies to hold part of their assets in Bitcoin, Bitcoin will become a more familiar presence in our surroundings, for example, being considered as one of the investment options for pensions and being offered at ordinary banks...we may be a little closer to a future like that.
Of course, this is still early days, and Bitcoin's value can fluctuate wildly (it can go up and down like a rollercoaster!), so it's not going to change everything right away, but it does suggest a breath of fresh air is blowing in the world of finance and how companies hold money and assets.
John's words
I think it's a really interesting time to see gold mining companies converting part of their profits into Bitcoin and saving them for the future. In the past, it would have been "Just keep gold as gold!", but it's very interesting to see companies turning their attention to new technologies and assets like this. Perhaps this is a big step towards a "new form of value."
This article is based on the following original articles and is summarized from the author's perspective:
UK Gold Mining Company Bluebird to Convert Gold Revenues
into Bitcoin