Bitcoin is a decentralized cryptocurrency and a form of digital currency that stands apart from traditional currencies due to its lack of control by a central bank or government.
Recognized not only as a medium of exchange but also as a significant investment asset, bitcoin is underpinned by a technology known as blockchain, which ensures the security and transparency of transactions.
A key aspect of bitcoin is its limited quantity, capped at a maximum of 21 million units, contributing to its value and appeal as a scarce and valuable asset.This scarcity and independence from traditional financial systems make Bitcoin particularly appealing to businesses seeking innovative and potentially lucrative investment opportunities.
Yes, it is legal for a business to buy Bitcoin, provided they comply with the regulations in their country. It is recommended to purchase Bitcoin through regulated and registered platforms, such as those recognized by the French Financial Markets Authority (AMF). Bitstack is a company registered with the AMF.
Many companies worldwide have started integrating Bitcoin into their treasury, recognizing its potential as a strategic asset for diversification and inflation protection.
Notable examples include:
Tesla: Led by Elon Musk, Tesla made headlines in 2021 by announcing a massive investment of 1.5 billion dollars in Bitcoin. This strategic decision was part of their policy for treasury diversification and return maximization.
MicroStrategy: Under CEO Michael Saylor's leadership, MicroStrategy has become one of the largest corporate holders of Bitcoin, investing over 4.5 billion dollars in the digital asset. The company adopted an aggressive Bitcoin acquisition strategy, considering it a superior store of value to fiat currency, especially in a context of increasing inflation.
Square: The financial services company led by Jack Dorsey, also the co-founder of Twitter, invested over 200 million dollars in Bitcoin, expressing confidence in the cryptocurrency as a future economic tool. Square highlighted Bitcoin's open and inclusive nature as aligning with the company's goals.
These investments illustrate a significant shift in the perception of Bitcoin, moving from a simple digital currency to an important strategic asset for modern businesses.
The advantages of integrating Bitcoin into a business investment portfolio are manifold, and Bitstack Business offers an accessible and secure way to do this.
Asset Diversification: Bitcoin provides an attractive diversification option outside traditional investments like stocks, bonds, or real estate. This diversification can help mitigate the overall risks of the company's portfolio by balancing the fluctuations of other investment types.
Inflation Protection: With expansionist monetary policies and the potential devaluation of fiat currencies, Bitcoin is often viewed as a hedge against inflation. Its capped supply of 21 million units makes it less susceptible to devaluation through increased supply, unlike fiat currencies.
Long-Term Appreciation Potential: Although known for its volatility, Bitcoin has demonstrated significant long-term growth potential. For businesses willing to adopt a long-term investment perspective, Bitcoin can offer attractive returns.
Independence from Traditional Monetary Systems: Bitcoin provides some independence from traditional monetary systems and their fluctuations, which can be particularly advantageous for businesses operating in an uncertain global economic context.
Accessibility and Liquidity: With Bitstack Business, accessing Bitcoin becomes simple and secure. Moreover, Bitcoin offers relatively high liquidity, meaning businesses can quickly convert their Bitcoin assets into cash if necessary.
Transactional Advantages: For businesses operating internationally, Bitcoin can offer benefits in terms of fast and cost-effective money transfers, without the fees or delays often associated with traditional banking transactions.
Innovation and Brand Image: Investing in Bitcoin can also enhance a business's brand image as innovative and at the forefront of technology. This can be particularly appealing to customers and partners who value innovation.
By integrating Bitcoin into its financial strategy via Bitstack Business, a business can enjoy these benefits while having access to an intuitive platform and dedicated support, making Bitcoin investment accessible and secure, even for those not familiar with the sector.
Businesses can purchase Bitcoin via regulated platforms like Bitstack. It's essential to create a corporate account, comply with Know Your Customer (KYC) procedures, and choose a suitable Bitcoin investment strategy.
Yes, the recurring purchase strategy, also known as DCA (Dollar-Cost Averaging), is effective for businesses, just as it is for individuals.
This method involves investing regular amounts in Bitcoin, which can mitigate risks associated with the Bitcoin price volatility and expose the business to the long-term upward performance of Bitcoin.
Why is DCA in Bitcoin Suitable for Businesses?
Reducing the Impact of Volatility: Bitcoin's high volatility can make it challenging to decide on a specific time to invest. DCA mitigates this issue by spreading purchases over time, thus smoothing the average cost of acquisition and reducing the impact of volatility.
Long-Term Strategy: DCA aligns with a long-term investment perspective. It encourages businesses to adopt a longer-term view, thus avoiding hasty decisions based on short-term market fluctuations.
Avoiding Behavioral Biases: By following a recurring approach, businesses can avoid impulsive and emotional decisions, such as buying due to FOMO (Fear Of Missing Out) or panic selling during sudden price drops.
Simplicity and Time Savings: With Bitstack, setting up a DCA is simple and fast. Businesses can schedule their investments, which will be automated, without the need for constant market monitoring or in-depth expertise.
Flexibility and Control: Businesses can choose the amount and frequency of investments based on their budget and financial goals, offering increased flexibility and control over their investment strategy.
Regular and Disciplined Accumulation: DCA promotes the regular and disciplined accumulation of Bitcoin, which is beneficial for businesses looking to build a value reserve or diversify their investment portfolio.
Adaptability to Business Objectives: Whether for a reserve fund, diversification, or as part of a broader investment strategy, DCA adapts to the diverse investment goals of businesses.
In conclusion, DCA is considered as a prudent strategy for businesses wishing to invest in Bitcoin with Bitstack Business. It offers a systematic and pragmatic approach to exposure to this asset class while minimizing risks and maximizing potential long-term benefits.
Securing your funds is our priority. Your funds are protected against cyberattacks, internal collusion, and human errors through a multi-signature key scheme. The use of multiple keys protects against the compromise of a single machine or the loss of a single key.
You can also choose to transfer your bitcoin to an external wallet for self-security.
Yes, it is entirely possible to transfer your business's bitcoin to an external wallet for self-security. At Bitstack Business, we understand the importance of flexibility and control in managing your digital assets. Therefore, we allow our clients to send their acquired bitcoin to an external wallet.
Here's how it works:
Easy Transfer: You can initiate a transfer of your bitcoin directly from your Bitstack Business account to the external wallet of your choice. The process is simple, intuitive, and guided step-by-step.
Personalized Security: By transferring your bitcoin to an external wallet, you have the opportunity to apply your own security measures, such as cold storage or hardware wallet solutions, providing a level of security tailored to your preferences.
Total Control: With the transfer of your bitcoin to an external wallet, you gain full control over your digital assets. This gives you the freedom to manage, use, or secure your bitcoin as you wish, outside of the Bitstack platform.
Assistance and Support: If you need help or advice on the transfer process or choosing an external wallet, our customer support team is available to provide you with the necessary support.
We are committed to offering our clients flexibility in managing their Bitcoin investments, while ensuring a secure and reliable platform for buying and selling bitcoin.
To sell bitcoin, businesses can exchange them on regulated cryptocurrency platforms. It is recommended to follow the same security and regulatory compliance procedures as for purchasing.
With Bitstack Business, you can sell all or part of your bitcoin instantly at any time.
Businesses must consider the tax implications of capital gains on digital assets and specific accounting rules for cryptocurrencies. It is advisable to consult an accountant or tax specialist who is familiar with these areas.
To start investing in Bitcoin for your business with Bitstack Business, please contact us using the "Contact Us" button on this page.
