Corporations are intensifying their Bitcoin accumulation, creating significant pressure on supply and potentially altering the entire global financial system.
The rapid increase of Bitcoin in corporate wallets combined with the sharp decrease in new supply from miners is creating an unprecedented supply-demand shock, signaling the risk of transitioning from fiat to cryptocurrency.
MAIN CONTENT
Public companies currently hold over 858,850 BTC, about 4.09% of the total supply.
The new Bitcoin supply from mining is decreasing with the next halving in 2028.
The forecast of 'Hyperbitcoinization' could turn Bitcoin into the preferred store of value instead of fiat currency.
Are corporations really accelerating their Bitcoin accumulation?
Data shows that public companies own over 858,850 BTC, equivalent to about $93 billion, accounting for 4.09% of the total Bitcoin supply. This statistic confirms the trend of using Bitcoin as a strategic reserve asset for large enterprises.
MicroStrategy is a prime example, holding over 597,325 BTC (over $64.9 billion). According to CEO Michael Saylor, the strategy involves issuing shares, using that capital to buy Bitcoin, increasing the amount of Bitcoin per share, and thereby raising the share value, creating a stable and increasingly robust capital cycle.
"The growing trend of companies buying Bitcoin is the 'Bitcoin flywheel', leveraging equity to buy BTC, weakening fiat currency."
Adam Livingston, Cryptocurrency Analyst, 2024
Why is the Bitcoin supply rapidly shrinking?
The current BTC mining reward is 3.125 BTC/block, which will be halved in 2028, according to the periodic halving mechanism. Miners are holding onto the rewards instead of selling, tightening the new supply while business demand is surging.
This creates an imbalance: decreasing supply, increasing demand, making Bitcoin scarcer than ever. According to financial experts' analysis, this condition is difficult to sustain long-term and will trigger a significant price jump.
What is the current state of Bitcoin reserves on exchanges?
Aggregated data from CryptoQuant shows that the amount of Bitcoin held on exchanges is down to about 2.4 million BTC. This is a record low, signaling that Bitcoin is leaving exchanges to enter corporate wallets or cold wallets.
Adam Livingston warns that at this rate of buying, the amount of Bitcoin on exchanges could run out in just a few months, creating immense pressure to drive prices higher and push retail investors out of the game.
Will Bitcoin lead to the era of 'Hyperbitcoinization'?
According to Adam Livingston, the trend of Bitcoin accumulation by corporations is not just a bull market but an early sign of the hyperbitcoinization phase – the process where Bitcoin becomes the primary store of value, replacing traditional fiat currency.
Chief financial officers of many companies view Bitcoin as a strategic treasury asset, and as regulations approve this, the influx of companies will accelerate, opening a new era for the global financial market.
"When Bitcoin is accepted as a corporate treasury asset, the door for early adopters closes, signaling a historic turning point in modern finance."
Adam Livingston, Financial Analyst, 2024
Frequently Asked Questions
Why are companies hoarding more Bitcoin?
To increase equity value and protect assets against inflation, according to analysis from CEO Michael Saylor.How does halving affect the Bitcoin supply?
Halving the mining reward slows new supply, increases scarcity, pushing prices higher.What does the decrease in Bitcoin on exchanges mean?
Bitcoin is moved to corporate wallets and cold wallets, reducing liquidity on exchanges and increasing upward price pressure.What is Hyperbitcoinization?
The process of Bitcoin replacing fiat currency as the primary store of value globally, forecasted by many experts.How do corporations use capital to buy Bitcoin?
Issuing new shares to raise capital, using that money to buy Bitcoin, increasing the BTC ratio per share and the share value.
Source: https://tintucbitcoin.com/bitcoin-bung-no-tap-doan-dua-vet/
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