Published: November 21, 2024 at 11:06 am
Updated on November 21, 2024 at 11:06 am
Bitcoin is everywhere these days. But is it a smart move or just a gamble? Companies like Nexon and Wemade are making waves by holding onto their Bitcoin, and it’s shaking up the cryptocurrency exchange market. This post dives into their strategy, the possible ups and downs, and what it could mean for the future of digital assets.
Bitcoin is the OG of cryptocurrencies. Since it popped up, people have been obsessed—and confused. Is it a stable asset? Or just some bubble waiting to burst?
So here’s the deal: according to sources like BDO Gibraltar and BIS, cryptocurrencies aren’t stable cash-equivalent assets. They’re super volatile and not backed by any government or authority. So yeah, they’re not exactly cash.
Let’s talk about two South Korean gaming giants: Nexon and Wemade. These companies are pretty open about their Bitcoin holdings—no plans to sell anytime soon. They see it as a strategic long-term play.
Nexon has 1,717 Bitcoins that they bought at an average price of $58k per coin. Even with all the ups and downs in price, they consider it an asset—just like cash. Their game plan? Don’t sell because of market fluctuations.
Wemade is in a similar boat—they’ve got 223 Bitcoins but haven’t disclosed how much they paid for them. A rep from the company said they’re just holding for now, looking to profit from future growth.
When big companies decide to hold onto their crypto instead of trading it, that can shake things up in the cryptocurrency exchange market.
If everyone’s holding and no one’s selling, there’s less Bitcoin floating around for people to buy or trade. Grayscale Research says about 60% of Bitcoin is held by long-term holders—that’s a lot!
Long-term holders don’t care about short-term price changes—they’re not selling regardless of what happens. So if demand goes up but supply stays low? Prices could skyrocket.
Having lots of long-term holders can actually make markets more volatile. If demand suddenly spikes when most people are holding off on selling, prices can jump hard.
When companies start treating Bitcoin seriously, it makes more companies think about doing the same thing—kind of like peer pressure but in business terms!
Thinking about going long on Bitcoin? Here are some things you should know:
First off—it’s risky! Here are some reasons why:
But there are also some juicy rewards:
So what does all this mean for the future? Corporate holdings like those from Nexon and Wemade could really change how we view cryptocurrencies in finance.
Take MicroStrategy—a company that went all-in on Bitcoin back in 2020. Since then its stock has skyrocketed; even outperforming tech behemoths like NVIDIA!
A report from River Financial shows corporate holdings have jumped 587% since 2020! Companies now hold over 3% of all circulating Bitcoins—that’s huge!
MicroStrategy’s bold move has inspired others; even firms named after them are following suit! This kind of adoption could lead to major shifts in treasury strategies across sectors.
And guess what? FASB (Financial Accounting Standards Board) is updating rules so companies can recognize crypto at fair value starting December 2024—that’ll make accounting easier!
Nexon & Wemade’s decision to hold onto their Bitcoins reflects an emerging trend where firms view cryptos as legitimate long-term investments amidst high volatility conditions present today. As more entities adopt such strategies, perceptions surrounding bitcoin may evolve leading towards broader acceptance into traditional financial systems.
While risks abound—from volatility, regulatory uncertainties, security vulnerabilities —potential rewards exist too : high returns, diversification benefits, inflation hedges. One thing’s certain : future looks promising for digital assets !
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