Cryptocurrency Information Bureau News: Purchase of $2600 million worth of Bitcoin! What is the company's strategy?
#Bitcoin #VirtualCurrency #BTC
Video explanation
[Explanation for beginners] Another big company buys a large amount of Bitcoin! What does this mean?
Hello! I'm John, your blockchain expert.
Have you seen the word "Bitcoin" in the news recently? Many of you may be thinking, "It seems difficult to understand." But don't worry! Today, I'll explain the latest news about Bitcoin in an easy-to-understand way for everyone.
This time, we will be covering the news that "A certain big company has once again bought a large amount of Bitcoin!" What does this mean for us? Let's take a look together!
First of all, what is Bitcoin (BTC)?
To understand this news, let’s first briefly review the main character, Bitcoin.
- What is Bitcoin:It is a type of "digital money" that can be used on the Internet. Although there are no tangible bills or coins like yen or dollars, it still functions as money.
- Who is in charge?:What's interesting about Bitcoin is that it is not issued or managed by any particular country or bank (such as the Bank of Japan, a central bank in Japan).
- How is it safe?:The safety and reliability of transactions are maintained using a technology called "blockchain" (a type of very secure digital ledger in which transaction records are shared among many computers and monitored by everyone, preventing tampering).
- What can it be used for?:Some people use it to pay for goods and services, and some hold it as an investment.
Bitcoin is often written as the symbol "BTC," so remembering this may make it easier to read the news!
News Point: Major software company buys more Bitcoin!
Now, onto the main topic of the news. According to the article, a large company developing software for businesses, reportedly named "Strategy Corporation" (said to be the American company MicroStrategy), has purchased Bitcoin again.
In particular…
- Amount of Bitcoin purchased:245 BTC
- 購入金額：That's about $2600 million! In Japanese yen, that's roughly39 million JPY(When calculated at 1 yen to the dollar) That's a huge amount!
The company has been known to be actively purchasing Bitcoin for some time, and this latest purchase brings the total amount of Bitcoin it holds to 1.592,345 BTCThis is a truly enormous amount!
The article also states that the purchase was made during a period of large fluctuations in market prices. We will return to this later.
Why are big companies buying Bitcoin? What is "institutional entry"?
You may be wondering, "But why would a normal company buy so much Bitcoin?" There are a few possible reasons for this.
- Attractiveness as a new asset:Some companies see Bitcoin as a new type of asset, like gold, and hope that it may become even more valuable in the future.
- To hedge against inflation:Some companies hold Bitcoin as a precaution against a decline in the actual value of money in the world (this is called "inflation").
- Expectations for technology:In some cases, people believe that the "blockchain technology" that underpins Bitcoin has a promising future and so purchase it as part of their investment.
The latest news is that "Institutional investors are accelerating their entry (meaning that large companies and organizations are accelerating their recognition of Bitcoin as money and assets)." In other words, not only Strategy, but other large companies are also starting to pay attention to Bitcoin.
What does it mean to buy "during market volatility"?
The news article said that you purchased Bitcoin during "market volatility." What does this mean?
"Market volatility" refers to a situation where the price of Bitcoin goes up and down and has large price fluctuations. The price can move like a roller coaster.
Making such a big purchase during such an unstable time can be seen as a message from the company that it believes in the long-term value of Bitcoin, rather than being overwhelmed by short-term price movements. It's quite a bold move!
What does this news mean for us?
Well, the recent news that Strategy has increased its Bitcoin holdings may be interpreted in this way by beginners like us.
- Is Bitcoin becoming less special?In the past, there may have been an image that it was something only a select few knowledgeable people possessed, but it may be that it is gradually being recognized by society, to the point where large companies hold it as an asset.
- A sign of promise for the future:This could also be seen as evidence that many experts and companies see some potential in Bitcoin and the blockchain technology it uses.
Of course, Bitcoin is subject to large price fluctuations, so if you're thinking, "Maybe I should try buying some," it's important to gather information properly and start within your means.
A word from John
But no matter how many times I hear it, it's still impactful when a company buys billions of yen worth of Bitcoin! It makes me think that there is a lot of hope that Bitcoin and blockchain technology "might change something."
Seeing news like this makes me even more excited to see what changes digital money and new technologies will bring to our lives. Of course, we need to be careful with new things, but being aware of them will broaden your perspective!
This article is based on the following original articles and is summarized from the author's perspective:
Strategy Buys $26 Million Worth Of Bitcoin