Swedish company buys more Bitcoin! Why now? A simple explanation for beginners
Hello! I'm John, the blockchain brother who will turn your "I don't understand" into "I get it!"
"I've been hearing a lot about Bitcoin in the news lately, but it seems complicated..." I'm sure there are many of you who feel this way. For those of you who feel this way, this time we'll pick up the latest news from overseas and explain it in the easiest way possible!
What I'm going to talk about today is the news that a company in Sweden, a faraway Nordic country, has increased its stockpile of Bitcoin (a kind of digital money that can be used on the Internet). At first glance, it may not seem relevant to us, but in fact, this is a very interesting movement when considering the future of money and technology. Let's take a look at it together!
News summary: Swedish company buys more Bitcoin
The topic of discussion this time is a Swedish company called "H100 Group." This company has been in the news for purchasing new Bitcoins.
Let's take a look at the numbers to see how much they bought specifically...
- Quantity purchased this time: 47.33 BTC
- The total amount owned by this company: 247.54 BTC
"BTC" is the unit of Bitcoin. It's the same as the Japanese yen or the US dollar.
So how much is this in Japanese yen? The price of Bitcoin is constantly fluctuating, but if we calculate it assuming 1 BTC = 1000 million yen...
- The 47.33 BTC I purchased this time wasApproximately 4 million yen!
- The total amount of 247.54 BTC isApproximately 24 million yenIt can also be used!
That's a huge amount! The key point is that this amount of Bitcoin is not an investment by an individual, but is held by a company.
Why are businesses buying Bitcoin? 3 reasons
You may be wondering, "But why would a company buy so much Bitcoin?" There are several possible reasons why a company would hold Bitcoin as an asset. To make it easy to understand for beginners, we will explain the three main reasons.
Reason 1: As a store of value, “digital gold”
Bitcoin is "Digital GoldIt is sometimes called "cryptocurrency." Because, like real gold, there is a limit to how much bitcoin can be issued. It is programmatically determined that there will only ever be 2100 million bitcoins in existence.
On the other hand, the currency we use on a daily basis, such as the Japanese yen or the dollar, can be newly issued by a country's central bank (such as the Bank of Japan in Japan) as needed. If a large amount is issued, the value of each piece may decrease little by little (this is called inflation).
To prevent the value of their assets from declining, companies sometimes hold Bitcoin, which is limited in number and thought to be less likely to lose value, as a "safe asset" similar to gold.
Reason 2: Upfront investment in future technology
The technology behind Bitcoin isBlock chainThis is called "cryptocurrency." It is a highly secure and transparent system in which transaction records are linked like a chain and shared and managed by computers around the world.
Some leading companies believe that blockchain technology has the potential to dramatically change the way finance and business work in the future. Holding Bitcoin now also means making an "upfront investment" in the digital society of the future. It's like the companies that realized the potential of the Internet early on in the 1990s and created their own websites.
Reason 3: Asset diversification (risk management)
Have you ever heard the investment adage, "Don't put all your eggs in one basket?" If you drop the basket, all your eggs might break, so it's better to put them in several baskets.
Companies also manage risk by dividing their assets into various categories, such as cash, stocks, real estate, etc. By adding the new option of "Bitcoin" to the mix, they aim to further diversify their assets and achieve stable management.
John's comment
Although this news is about a company in Sweden, a somewhat distant country, it is a good example of how blockchain technology is steadily spreading around the world. It is very interesting to see how a technology that was once the preserve of a few experts is now beginning to be recognized as a corporate asset. It will be interesting to see what companies will enter the market in the future!
This article is based on the following original articles and is summarized from the author's perspective:
H100 Group Increases Bitcoin Holdings With New Bitcoin
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