Analysts Expect Flood of Companies to Follow Tesla and Hold Bitcoin —Twitter Already Considering – Markets and Prices Bitcoin News


After Tesla’s move to invest $ 1.5 billion in Bitcoin, analysts predict a flood of other companies will follow. Mad Money’s Jim Cramer believes that all companies should include Bitcoin on their balance sheets, and Twitter announces that it is already under scrutiny.

Other companies will follow Tesla’s Bitcoin lead, analysts say

After Elon Musk Tesla’s groundbreaking move to invest $ 1.5 billion of the company’s cash reserve in Bitcoin, many people expect other companies to take a similar move.

Mad Money host Jim Cramer applauded Elon Musk and Tesla for making more of their money and for being on top. He said Tuesday:

Treasurers of all companies should consider diversification. Have some money in bitcoin.

The announcement of Tesla’s purchase of Bitcoin has also inspired retailers around the world to buy Bitcoin, including in India, where local crypto exchanges saw a sharp surge in cash deposits, new registrations and trading volumes following the release of Tesla’s Bitcoin news. The global crypto exchanges saw a similar trend, including Coinbase, Binance, and Kraken.

Don Wyper, COO of Digitalmint, noted that “Tesla has approximately $ 20 billion in cash on its balance sheet, so the volatility of $ 1.5 billion would have less than 10% impact on the company. “

Carlos Betancourt, co-founder of Bkcoin Capital, noted that Tesla’s Bitcoin purchase “could be the catalyst to push Bitcoin’s market cap to $ 1 trillion,” adding that “a company like Tesla made the move undertakes that the further introduction of crypto as an alternative will only accelerate investable asset class. “

David Mercer, CEO of Lmax Group, said his company expects “2021 will be a year when many other big names make the official transition into space”. He said, “We expect the trickle of institutional investment to turn into an overwhelming tide as we move into 2021 and beyond.

Institutions are now treating Bitcoin as a treasury asset, and it is inevitable that all companies will allocate some of their reserves to a proven, robust and value-adding asset. We would expect corporate treasurers to consider allocating 5% to 10% of the reserves for bitcoin.

“We believe this is just the beginning of a much wider adoption of institutional names that are finally ready to make the transition into the crypto space,” commented Joel Kruger, currency strategist at Lmax Digital. “At the same time, we would warn against the expectation of a meaningful continuation of the upward trend in Bitcoin.”

Etoro analyst Simon Peters described, “We expect others to follow in Tesla’s footsteps, with Bitcoin payments making increasingly sense for companies that do almost all of their sales online.” He emphasized that “this has far-reaching implications Company Has “, stating,” When nearly $ 1 trillion worth of Tesla-sized companies believe Bitcoin can be used this way and are ready to take action to back their views others will no doubt start to ponder it . “In addition, the analyst believes:

Tesla has diversified its own business by investing heavily in Bitcoin. We believe other companies will also try to hold Bitcoin both as a diversifier and as an insurance policy against depreciation of other currencies.

Yang Li, Ziglu’s Chief Growth Officer, expects “the limitlessness of Bitcoin” to help Tesla “optimize its finances and cash flow,” especially when entering new markets. Furthermore, there will inevitably be high inflation rates if world governments continue to aggressively stimulate the economy during this current pandemic. By investing in Bitcoin, Tesla can protect its current holdings from inflation and may even experience a plunge if the price of Bitcoin continues to rise, as it has in the past. “

On Wednesday, Twitter’s Chief Financial Officer Ned Segal announced on CNBC’s Squawk Box that his company has “thought a lot in advance” about how it might pay employees or suppliers if they ask for payment in BTC, and “whether we need Bitcoin on our balance sheets. “Finding that no decision had been made, he reiterated that this is something Twitter continues to“ study and look at ”.

In the meantime, not all are confident that other companies will follow Tesla’s move. JPMorgan analyst Nikolaos Panigirtzoglou, for example, doubts that other companies will include BTC on their balance sheets because it would “greatly increase the volatility of the overall portfolio”. General Motors CEO Mary Barra said on Wednesday that GM has no plans to invest in Bitcoin.

Do you think more companies will convert cash into bitcoin? Let us know in the comments below.

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