The Quarterly Based Cycle of Boom and Bust By HumbleFarmer
Shanghai 2010, during its roaring boom days in the aftermath of the GFC. Forex trading on capital markets was all the rage. So much so that major corporations from Construction to Real Estate companies set up entire floors of their office buildings solely dedicated to 24/7 Contract for Differences Forex Trading. All to lock in profits in the volatile yet plentiful opportunities the Financial Crisis afforded.
They were good days for those balance sheets. It’s hard for me not to see the same correlations with current Crytpospace. This time, it’s U.S. companies. Or at least companies that follow the traditional quarterly system and think that way.
Our good friend, Michael Saylor (definitely deserves the title Bitcoin Jesus over what’s his face) introduced U.S. public corporations to the sector. They now play in Cryptospace as a side hustle with their corporate funds and it’s all completely legal. For those who don’t know when Saylor committed MicroStrategy funds to BTC, he also wrote a paper explaining how other companies could do the same.
From the events of the past few weeks we can safely assume corporate adoption took place. First quarter of the year was nothing but buying. They sell in the second quarter. Lock in profits for their balance sheets. Rinse and repeat. We can all look forward to them definitely doing this again. After all, it’s perfectly legal. And puts them in the good graces of shareholders by delivering profits in a pandemic world.
Strange times are indeed upon us. But hey, this is great news for Chia fans! XCH will not be subject to these kinds of shenanigans. The preferm exists ironically enough to ensure continued decentralization and maintenance of price stability so things like this simply won’t happen with the XCH price post IPO.
Yet, I dare say, another reason for major mass Chia adoption in the future.