Bitcoin’s price is rising again, but the real climb higher could only be just beginning. Asia is likely to be the source of demand.
Bobby Lee, an entrepreneur who managed China’s first Bitcoin exchange, believes that the government is moving towards a ban on cryptocurrency. It makes sense that nationals would seek anonymity in digital currency, given the recent corporate crackdown.
It is clear that the Chinese government wants to transform the digital economy. The State Council of China ordered that private tutoring companies for profit become non-profits last week. Many of these companies are publicly traded corporations with shareholders. Overnight, billions of dollars were lost by removing the earnings potential.
The state has been involved in numerous problems with online finance, ecommerce and ride-hailing. According to Reuters Wednesday, online gambling could be the next target.
Lee experienced the wrathful state at first hand during his time at BTC China. After a ban on cryptocurrency trading, the 7-year-old bitcoin exchange was closed down in 2017. Bloomberg was informed Monday by Lee that banning all crypto trading is the next logical step.
It’s not surprising that bitcoin soared during the Chinese corporate crackdown.
MicroStrategy has become the go-to for tech companies.
It is a profitable, well-run enterprise software company. The firm’s back is all about leveraged Bitcoin investment. The Tysons, VA-based firm now has 105,000 bitcoins.
Chief executive officer Michael Saylor decided that bitcoin ownership would bring more shareholder value than cash in 2020. Saylor then began selling debt to purchase more Bitcoin.
In the last 12 months, the software business generated $83.8million in free cashflow. This is enough to pay the service debt and run the business.
MicroStrategy shares are a good option for investors looking to leverage bitcoin.