How Wallstreet Companies are deceptively using Bitcoin’s hype to grow their own market share.
The recent news about institutions entering the crypto markets is extremely deceptive, and misleading.
In investing, it’s best to follow the facts, and not unnecessary hype. This article will touch upon the facts that nobody wants to talk about:
1. Grayscale Investment Trust
Contrary to popular belief, Grayscale owns 0 Bitcoin.
The actual clients of this fund are the real buyers of them.
Grayscale is a portfolio management service, all they do is trade on behalf of their clients, and then charge insanely high fees.
In addition, this fund hasn’t been too profitable during past market cycles.
Relying on them isn’t recommended.
In October 2018, the price of shares for the Grayscale Bitcoin Investment Trust (GBTC) had gone down over 80 percent!
MicroStrategy was a startup during the 2000’s dot com boom, and following its burst, its stock prices have plummeted over 95%.
With the recent mania surrounding cryptocurrencies, the CEO (@michael_saylor) is using BTC in an attempt to spawn new hype.
MicroStrategy has seen falling revenues for almost a decade now. Mainly because of their declining demand.
Their recent $425 Million Dollar Investment into Bitcoin is nothing more than a way to make headlines, and generate more hype around their failing stock prices.
And it worked!
MS stock has risen almost 40% since they first announced they got into BTC. This covers their entire “investment”, and is what the owners were truly after.
Genius if you ask me, but not “Bullish for Bitcoin” like many crypto influencers are saying.
3. Square Inc.
Square’s recent $50 million dollar investment into Bitcoin is nothing more than a publicity stunt to get their stock prices moving up on a stagnating market.
They’ve gained over $130 million in value (from shares) since announcing their investment into BTC.
If Square was actually bullish on Bitcoin up here, then why are they holding 98% cash, and only have 2% in BTC?
It’s actually concerning how no one is talking about this, but I’m not surprised. Misleading, and over-hyped news always spreads faster than the real news.
The purpose of this isn’t to bash BTC. I’m a huge fan!
I think Investors need to hear the truth, rather than whatever narrative they will try to push next. The markets are severely overvalued in the short term, and buying during this FOMO rally is a big mistake.
It’s recommended that you patiently wait for a large correction, and then fill your wallets. Similar to March! If you look at all the factors that are propping up the markets right now, you will conclude that we are more likely to revisit 3K before surpassing ATH’s again.
I really hope that this thread could bring light to the recent news circulating about these institutions.