In July, most of the high bitcoin (BTC) and others cryptocurrencies was explained by the possibility of Amazon (AMZN; AMZO34) accept bitcoin payments for your products. The rumor was disproved by the company itself after a few days.
Amazon, Musk and Ethereum 2.0
Of course, other factors were also important for the rise, such as the increase in hash rate, filling the space left by chinese miners per validators from other countries and the decrease in supply, resulting from the increase in the so-called “hodlers” (which keep the asset in the portfolio for a long period).
Anyway, why does a company buying bitcoin generate such anticipation? One of the answers might be: the massive adoption of treasuries and companies in general by cryptocurrencies is a matter of time. However, it requires some anguish regarding how this movement will be carried out.
In all major market movements, there is always news — or a rumor — of a renowned company entering the crypto market.
It was the case of Facebook (FB; FBOK34) with the Lb (now Diem), in 2019, and Paypal (PYPL34), in 2020. From the second half of 2020, we saw the first publicly traded companies investing a relevant part of the cash in bitcoin.
This fact aroused the interest of other companies and individuals by cryptocurrencies, taking bitcoin and altcoin quotes—alternatives to bitcoin—to the highest levels of history in the coming months.
The first companies to adopt cryptocurrencies in their corporate treasuries — such as Microstrategy (MSTR) and Tesla (TSLA; TSLA34) — were those linked to technology and which, therefore, tend to be more open to innovation than some companies in older sectors of the economy.
These companies are always active in the new economy through direct investments or by accepting cryptocurrencies as a means of payment in order to obtain knowledge, in addition to protecting against possible inflation.
In conversations with large companies, some managers declare that there is a desire to invest part of the treasury resources in cryptocurrencies to learn about this innovation.
However, challenges — strict corporate investment policies, lack of knowledge about custody and the way you book the asset in your accounting books—end up slowing down this process.
Another fact that makes adoption difficult is the price volatility inherent to the short-term market for cryptocurrencies.
Despite such complicated barriers and the difficulty in the decision process, when a large company announces that it has plans to participate in the cryptoeconomy, it generates great expectations in the market, as it can be a catalyst for mass adhesion.
Although we still have challenges to join the corporate market, the question is not “if” it will happen, but “when”.
Compliance regulations, accounting guidelines and possible regulation of this asset class are always under discussion and will drive the adoption of cryptocurrencies and blockchain by companies at very robust levels in the coming years.
Igor Rodrigues is trading head of MezaPro, 2TM’s business unit focused on institutional and high-income clients.
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