Mainstream Companies Investing in Bitcoin
As the beginning of 2021 has shown, social media has played a significant role in companies investing in Bitcoin. Previously, companies investing in Bitcoin were unheard of. Bitcoin used to be a cryptocurrency that many people had heard of but didn’t know exactly how it worked. Now, as the years progress, more people are informed about Bitcoin and the many benefits of investing in it. Because many mainstream companies have invested in Bitcoin, it has given potential consumers renewed confidence in the everyday uses of Bitcoin.
Here are a few of the mainstream companies that have invested in Bitcoin.
4 Mainstream Companies Investing in Bitcoin
In past years, many companies and consumers have disregarded Bitcoin. Many felt that cryptocurrency was too challenging to understand and too hard to use in everyday life. Because of this, many people did not invest; however, now, Bitcoin has increased in popularity exponentially. There are now more ways than ever to spend your Bitcoin wherever you are.
Tesla
Earlier in 2021, Elon Musk hinted that he might be interested in purchasing Bitcoin, which led to increased public awareness and interest in the cryptocurrency. Musk then took it a step further and invested $1.5 billion into Bitcoin, and the cryptocurrency's value increased exponentially. In addition to his investment, Musk also announced that, soon, they would allow customers to purchase Teslas with Bitcoin. This announcement was monumental because, previously, it was complicated to make purchases with Bitcoin. The $1.5 billion investment made itself more than worth the risk because it had already risen in value by more than 1 billion dollars by the end of the month.
Microstrategy
Microstrategy is a firm that produces mobile software and cloud-based services. In February of 2021, they spent an additional $10 million on Bitcoin. Microstrategy made its first purchase in August of 2020 and initially purchased $250 million worth of Bitcoin. The company's CEO invested in Bitcoin because the returns on Bitcoin were better than they were on gold. At one point, CEO Michael Saylor says he was purchasing $1,000 worth of Bitcoin every second. In buying so much Bitcoin, Microstrategy saw more people investing in their company to gain exposure to the popular cryptocurrency. After their initial purchase in August, Microstrategy's stock rose over 400%.
Square
February was a popular month to invest in Bitcoin; Square purchased $170 million worth of Bitcoin, equaling about 3,318 Bitcoin. Square is known for creating the Cash App and its Point of Sale system, Square Point of Sale. This system allows merchants to make sales via their smartphone through an app. Cryptocurrency investment is a large part of their business, precisely because of the Cash App. The Cash App allows users to purchase Bitcoin as well as deposit it into your Cash App account. The CEO of the company did this in hopes of making cryptocurrency more accessible and valuable. CEO Jack Dorsey is very passionate about Bitcoin and cryptocurrency and hopes that Bitcoin will be the only currency used one day. He is also working in partnership with Jay-Z to start a Bitcoin endowment that will focus on developing the cryptocurrency in India and Africa.
JP Morgan Chase
While JP Morgan has not directly invested in Bitcoin, they now allow their clients to invest and hold Bitcoin through their company. This announcement comes as a shock to many as the company has consistently voiced its distrust in Bitcoin. The clients' Bitcoin funds will be actively managed, and JP Morgan may be the only large bank to allow their clients to hold Bitcoin funds. The program could roll out as soon as this summer. The plan to actively manage the funds is so that clients will see better returns than a straight investment or a passively managed account would wield, which move in the direction of the market. JP Morgan would have to have very great timing to make sure their clients see optimal returns.
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Mastercard
Mastercard, the popular debit card service, also announced that users would be able to make transactions using cryptocurrency sometime this year. Unfortunately, Mastercard has not released many details about how this process will exactly work. According to Mastercard, cryptocurrencies must meet specific criteria to be considered. Those criteria are as follows:
Provide strong consumer protection, including privacy and security of consumer information and transaction data.
Allow all stakeholders, including financial institutions, merchants, and mobile network operators, to contribute to and benefit from their blockchain networks.
Operate in compliance with applicable laws and regulations, including anti-money laundering laws.
Some experts believe that no existing cryptocurrency can meet those requirements. Mastercard may have to change some of its expectations or consider falling behind the times and not implementing cryptocurrency into its business plan.
Paypal
Paypal, the parent company of Venmo, has recently allowed users to purchase and make purchases through the app. Being able to make purchases with Paypal is a game-changer because it will enable consumers to use Bitcoin in their everyday lives. Using Bitcoin in this way was previously unheard of. Before advancing this technology, users would have to sell their shares of Bitcoin or their cryptocurrency of choice to make a purchase. Paypal does intend to further its involvement with Bitcoin and cryptocurrency.
Invest in Your Future With Pelicoin
Pelicoin is a Bitcoin ATM service with locations all over the Gulf South. Many of these ATMs are located in convenience stores and gas stations that are open 24/7, so you can purchase your Bitcoin any time of the day. Our ATMs are incredibly user-friendly and allow new investors and seasoned pros to buy their Bitcoin with ease. Stay ahead of the game, download these top apps for new investors, and then head on over to a Pelicoin ATM near you to start investing with Bitcoin today!