Cryptocurrency Information Bureau News: Blockchain company buys $2000 million worth of Bitcoin! Pay attention to the investment strategy! #Bitcoin #Blockchain #Cryptocurrency investment
Video explanation
European company buys huge amount of Bitcoin! What does this mean?
Hello, I'm John, your blockchain guide! Recently, news broke that a European company had bought a lot of Bitcoin. The company is called "The Blockchain Group" and...Bitcoin worth about 2000 million dollars (about 30 billion yen in Japanese yen!*)It seems that they purchased additional Bitcoin! You may be wondering, "What is Bitcoin?" and "Why would a company buy so many?" Today, we will explain this news in an easy-to-understand way even for those who are new to blockchain technology (a new mechanism for securely recording and managing information)!
(*When converted at 1 yen to the dollar. The rate may vary depending on the exchange rate. The same applies below.)
First of all, what is "Bitcoin"?
First, let's briefly talk about Bitcoin, the main topic of today's news.
Bitcoin is one of the so-called "digital currencies" or "crypto assets.""Electronic money" that can be used on the InternetTry to imagine it as something like this.
Bitcoin has some interesting features that make it different from the currency we use every day (such as the Japanese Yen):
- It is not issued or managed by any particular country or bank: There is a central organization that issues and manages money, such as the Bank of Japan for the Japanese yen and the US central bank (the Fed (the central bank of the United States, similar to the Bank of Japan in Japan)) for the US dollar. However, there is no such central administrator for Bitcoin.
- Blockchain technology is used: Records of Bitcoin transactions (such as who sent it to who) are managed using a special technology called "blockchain." This is a system in which transaction data is put into boxes called "blocks" and then linked together like a "chain" to record and manage them. These records are stored in many computers around the world, so it is said to be very difficult for someone to tamper with them.
- Potential for worldwide use: As long as you have an internet connection, the number of stores that allow you to transfer money across borders and pay with Bitcoin is gradually increasing.
Because it is still a new technology, its value can fluctuate greatly, but because of its interesting mechanism, it is attracting attention around the world as the "money of the future."
What kind of company is The Blockchain Group, the subject of the news?
The company that purchased a large amount of Bitcoin this time is called "The Blockchain Group."
This company is based in Europe and seems to specialize in holding and managing large amounts of crypto assets, especially Bitcoin, as a company's "assets." The original article introduced it as the "European Bitcoin Treasury Company." "Treasury" has the meaning of a company's "money manager" or "treasurer." In other words, it may be easier to understand if you think of this company as a professional Bitcoin manager that carefully stores and manages Bitcoin as a company's important asset.
What did they do specifically? ~Purchasing about 30 billion yen worth of Bitcoin!~
So, what exactly did The Blockchain Group do?
I purchased an additional Bitcoin worth about $2000 million (about 30 billion yen in Japanese yen!)
The amount of Bitcoin purchased182 BTC (BTC)This "BTC" is a unit of measurement for the amount of Bitcoin. Just like "1 yen" or "1 dollar," the amount of Bitcoin is expressed as "1 BTC."
With this purchase, the total amount of Bitcoin held by The Blockchain Group is now1,653 BTCAnd the current value of this 1,653 BTC is:Approximately 1 million dollars (approximately 7200 billion yen in Japanese yen!)It's surprising that it can reach as high as 100,000 yen.
How did you get Bitcoin? It's a little complicated, but to put it simply...
According to the news, this Bitcoin was obtained by "converting convertible bonds and warrants."
Some of you may be thinking, "Hmm, it seems like a bit of technical jargon and difficult to understand..." Don't worry, I'll explain it briefly here too!
These are slightly special financial mechanisms that allow companies to raise money and acquire something in the future (in this case, Bitcoin).
- Convertible bonds: It is a type of "IOU" issued by a company when it borrows money. It is not just a repayment of money, but a special corporate bond (a bond issued by a company, in other words, a kind of debt document) that includes the right to "exchange (convert)" it into the company's stock or, in this case, Bitcoin in the future.
- Warrants: This is the "right" to buy a company's stock or bitcoin at a predetermined price in the future. You may have heard of the term "stock acquisition rights," and it is a similar mechanism.
In other words, The Blockchain Group used these "rights to exchange for Bitcoin in the future" and "rights to buy Bitcoin at a predetermined price" that they had previously held to acquire an additional 182 BTC. Rather than buying it in the market with cash, it can be said to be one of the financial strategies to systematically increase assets.
What does this news mean for us?
You might think, "Oh, so some company bought Bitcoin," but this news gives us an interesting perspective.
- A sign of confidence in Bitcoin? The fact that a company that specializes in Bitcoin is purchasing such a large amount of Bitcoin can be seen as a sign that the company recognizes the future potential and value of Bitcoin.
- New forms of corporate asset ownership: In the past, the "assets" held by companies mainly consisted of cash, deposits, stocks, real estate, etc. Recently, however, an increasing number of companies are actively holding digital assets such as Bitcoin. This suggests that as times change, the things that companies value are becoming more widespread.
- What will make Bitcoin more accessible?: As news of companies purchasing large amounts of Bitcoin increases, this may serve as a catalyst for Bitcoin and blockchain technology to gradually become more widely accepted in society among ordinary people.
Of course, Bitcoin is still a new technology, and there are some things to be aware of, such as the risk of large price fluctuations. However, the fact that large organizations are seriously considering it as an investment target is very interesting in terms of considering future trends.
John's words
Wow, that was a huge amount of news! He bought an additional $2000 million worth of Bitcoin, bringing his total holdings to $1 million... It's a scale that is hard to imagine for an individual, but it's proof that Bitcoin is attracting attention and expectations at the corporate level. I'll continue to pay attention to how these developments will affect our lives and the economy in the future!
This article is based on the following original articles and is summarized from the author's perspective:
The Blockchain Group Buys $20 Million Worth Of
Bitcoin