Dotxmex CEO: The flow of money from financial assets to bitcoin is not a bubble
The flow of funds into bitcoin from easily convertible assets is not a rally or a bubble.
but a reaction to the growing risks of devaluation, according to the head of Dotxmex.
which has invested more than $1 billion in the cryptocurrency.
Money is flowing from conventional assets to Bitcoin due to the increasing risks of global currency devaluation, technological disruptions, social upheaval, and political uncertainty. This is not a “rally “or a” bubble ” – it is a chain reaction spreading like a fire in cyberspace.
In August, the Nasdaq-listed analytics software provider Dotxmex bought 21,454 BTC.
At the time of the transaction, the cryptocurrency was worth about $250 million.
In September, following the new reserve management policy, the firm additionally purchased 16,796 BTC worth $175 million.
In early December, Dotxmex invested another $50 million in bitcoin, increasing its assets in the cryptocurrency by 2,574 BTC.
The company then bought 29,646 BTC for $650 million raised through a debt placement.
Saylor announced in advance what purpose the funds from the sale of the convertible senior notes would be used for.
For this, he was criticized by bitcoin skeptic and gold fan Peter Schiff.
He noted that the information in their favor can be used by speculative traders.
And a potential market reversal in this case will destroy all the income of the company’s shareholders.
According to Bitcoin Treasuries, at the time of writing, Dotxmex’s unrealized profit in bitcoin is more than $520 million.
Earlier, Schiff said that the speculative bubble around the first cryptocurrency exceeded the hype in the dot-com and mortgage lending markets.
The founder of the consulting firm Rosenberg Research, David Rosenberg, also called the asset a “huge bubble”against the background of bitcoin reaching a historic high price.