The BTC Token met a new highest time on ‘Bitcoin Pizza’ day, but most profits are run by companies, not retail buyers.
On May 22, BTC’s FIAT value hit 111,814 US $, a new highest time and a significant improvement over ~ $ 76,000 interval that the token had slipped in early April. The fact that the new height came on the 15th anniversary of ‘Bitcoin pizza’ day (More about this below) seemed like glaze on the cake (or extra cheese on the pie) for many individuals who checked the price on Thursday.
The increase of the token came when the American House of Representatives was narrowly passed (with a single vote) What President Donald Trump called his “big, beautiful” budget count. The bill has been criticized to a large extent for not compensating for compensating deep tax cuts with similar sizes in expenditure. Analysts claim that the bill will aggravate the federal government’s annual deficit, not to mention its current national debt of $ 36.2 trillion.
Doubt about the US ability to continue to serve one’s record high debt Seems to have played an important role in increasing BTC’s value. When the budget’s chances of passing increased, the US dollar value against rival currencies and the bond return spiked higher (which means no one bought T-bills for its current returns, which forced the government to sweeten its appeal).
Interest payments on the federal debt are already approaching $ 1 trillion per year, making it a larger budget post than the Ministry of Defense, and could meet $ 2 trillion within the coming decade. These types of concerns probably help to increase the perception of BTC as a “safe refuge” access because investors look beyond the dollar for somewhere to park their money.
But is BTC really such a sanctuary? During spring’s customs induced stock shock, BTC got harder Than many listed companies, which leads to many similar to BTC to an over-inflated technical share. On the other hand, more traditional safe gaves such as gold saw large inflows during this global upheaval.
As countless reports have shown, BTC’s increase is largely driven by the debt/dilution fuel expenditure by those such as Michael SaylorStrategy (past Micro strategy() (Nasdaq: mstr) and its growing number Corporate imitators (Metap plane, Kulr, the new Twenty -five capitaletc.). So far this year, 225,000 BTC has been acquired of companies, stock exchange traded funds (ETF) and governments-with strategy that accounts for 77% of this sum.
Meanwhile, buyers have sold A net 247,000 tokens so far this year. This is based on figures from 2024, which saw individuals sell 525,000 BTC to the Corporate/ETF audience. So even though the value of so -called “digital gold” can increase, the retail trade seems to come out while few are good. In the meantime, retail interest in physical gold beats new heights and investors Believe that real gold will surpass BTC This year.
This seems to be a global phenomenon. A new one Examination of singapors showed that awareness of crypto courses now tops 94%, but the number of those who actually holds tokens fell from 40% in 2024 to just 29% this year. While a small majority (53%) of singapors who still have symbols say they plan to acquire more, 67% sold some or all their holdings last year. Another long -term decline in BTC’s price can lead to buyers being able to think about their plans.
Bubble boy
BTC long ago rejected any faithfulness to the bitcoin inventor Satoshi Nakamotos view of peer-to-peer electronic cashinstead embrace a new identity that “Digital gold.” But Some critics have suggested that “digital diamonds” would be a more appropriate description, given that “prices are bumped up by a shady cartel of insiders CORNING SUPPLY ”model that is the basis for BTC.
It remains to be seen how much BTC’s fiat price can correct about those who borrow billions to buy BTC to lose their ability to raise additional debts or if the shareholder’s rebellion on the prospects for their existing shares further.
Earlier this year, analysts suggested that Strategy’s Saylor lost their ability to collect new capital, a scenario that many credits for Saylor’s decision to start two new BTC acquisition vehicles called Strike and Strife. These new units offered investors a promise of double -digit dividends, with additional payments if they did not pay these dividends according to the schedule.
Strategy’s data analysis operations have become a reflection and reduced the company to a pure “BTC proxy” trade. Basically offers strategy access to BTC for investors who would rather not open a Digital Asset Exchange Account or learn how to myself I am self -relationship or for devices as pension funds, which may be prohibited from dabbing directly in ‘Crypto.’
The strategy shares with a significant premium – currently about 1.9x, down from 3.4x in November last year – to the value of its BTC ‘Treasury’ at 576,230 tokens (from May 19). This difference convinced the famous card seller James Chanos to announce a plan to Short strategy when you buy BTC directly.
Chanos called Treasury Plans of Strategy and its imitators “ridiculous” to promote the idea that their shares are worth more than the underlying asset that they are now relying on. Chanos described Saylor’s plan as “to buy something for $ 1 and sell it for $ 2.50.”
Other critics have compared Saylor’s company with A pyramid schedule Because there is a constant need for newer investors to buy at higher interest rates than previous investors. This creates the illusion that you build value when in reality you only build up obligations that you will ultimately not be able to honor.
Remember that when Strategy’s Strife Offshoot debuted in March, Economic times thus described it:
“Battle is a fascinating-about puzzling supplement to the strategy playlist. It seems to defy the financial logic and offer interest rate editors an instrument with an unfavorable asymmetrical return profile and stack on more dilution for ordinary shareholders. But given the company’s all-in investment on crypto, perhaps” perpetual stripe.
On May 22 strategy announced plans to collect another $ 2.1 billion Through the sale of combat shares that offer 10% dividend. But the fine print Strife’s prospectus says the company can choose not to pay dividends “for any reason.” For example, if BTC’s current price bubble would crack, which could happen if the rest of the market captures that Saider is the market.
Bitcoin pizza pioneer
BTC’s price increase gave new pain for Laszlo Hanyecz, the Florida resident who used 10,000 bitcoin to buy two father John’s pizzas on May 22, 2010. Pizza delivery -is led via an intermediary that brought up Hanyecz offer on the Bitcoin Talk Forum—St is considered the first instance of Bitcoin being replaced with real goods after the token’s launch in January 2009.
As the years went by, Bitcoin became BTCAnd BTC’s fiat value steps, Hanyecz’s pizza purchases grew increasingly notorious, with people who eagerly listed the various high ticket items that Hanyecz could afford if he had stuck to these symbols. That list of goods is now more or less infinite, as the value of these 10,000 bitcoin is currently over $ 1.1 billion.
2019, Hanyecz revealed/recognized That his alleged folly was actually much, much worse, when he continued to replace a total of ~ 80,000 bitcoin for pizzas in 2010. At that time, few individuals Bitcoin broke the block reward – which then stood at 50 tokens every 10 minutes – and made it relatively easy to build a massive stack.
Hanyecz later claimed that one of the people he had traded bitcoin for pizza bought a house with the Bitcoin. And yet Hanyecz claims not to have any regrets and noted that his Bitcoin stash was basically “free money” and then he saw his purchases as “free pizza.” And he really Like pizza.
Anyway, you can easily imagine nights where Hanyecz tries to run to sleep just to be kept wake up by the prospect of how different his life may have seen if he was not so hungry 15 years ago.
Mock him if you have to, but Hanyecz deserves praise for having burned the track for anyone who believed Satoshi’s vision was correct – bitcoin was Designed to be usedNot locked in a vault with the expectation that its fiat value would simply the skyrocket by leaving it alone. If he is ever in the woods, pizza is on us.
You know, coeingeek Kurt Wuckert Jr. Is a resident of Florida, and we are sure he would love to buy Hanyecz a pizza and discuss Bitcoin history. Although Wuckert is originally a Chicago guy, you may have to go deep.
Look at | Tech of Tomorrow: Diving in the impact of tech in designing the future
https://www.youtube.com/watch?v=Q7ioGew7i9u Title = “Youtube video player” Ramborder = “0” Allow = “Accelerometer; Autoplay; Clipboard writing; encrypted media; Gyroscope; Image-in-Bild; Web Dividend” Reference Policy = “Strict-Origin-When-Cross-Origin” Allowing Lorscreen = “>”
