Games, dating and bitcoin … ghost vaults grab billions


seemed Money markets The American gateway to the new world, where I managed Bitcoin From the conquest of Wall Street, as other nascent companies carried out into the corridors of the fortress of money in the world, to the entry of the billionaires club also in a few days, amid a clamor in front of it the screams of large investors warning of an imminent moment of collapse, which heralds a major crisis affecting the real assets that live the world For its existence.

After the great uproar in Wall Street in the last days of last January, due to an army of “amateur investors” invading the shares of the “Game Stop” video games company and some peer companies, so that these shares rose by about 500% in a few days, other companies appeared From the virtual world tunnel, too, to catch the eye, and this time it came through the company responsible for the dating application “Bumble Inc.”, which led the owner of the company to enter the billionaire club in one day.

The shares of Bumble Company jumped on the first day of the offering, last Thursday, by 85%, making the value of the company estimated at about $ 14 billion, according to data reported by Bloomberg, while the value of the share of the CEO of the company, Whitney Wolf-Heard, jumped. To $ 1.5 billion.

And “Bumble” is the latest technology company to jump in its first appearance in the trading market, and its application allows women only to take the first step during the online dating stage, unlike what is happening in the dating processes on similar networking sites.

The momentum around the shares of electronic games companies is also increasing. Electronic Arts continued its buying spree, as it agreed to buy the company, Glu Mobile, a competition for the games industry, for $ 2.1 billion, as the high demand for video games during the Corona epidemic led to an increase in growth in This sector, and sparked a wave of merger, as the company “Electronic Arts” agreed last December to buy “Codemasters” for $ 1.2 billion.

However, the largest share of attention grabbed came in favor of Bitcoin, whose value has jumped by more than 76% in only about six weeks since the beginning of this year 2021, as it broke in transactions, yesterday, Wednesday, a new “block wall”, to reach 51 thousand dollars per unit, And the market value of its traded units rises to 946 billion dollars, compared to 926 billion dollars in Tuesday evening trading, thus reaping 20 billion dollars within a few hours.

Virtual currencies have generally received support from international investors and institutions, amid the growing demand for investment in Bitcoin in particular, which analysts expected to reach $ 100,000 in value later this year, despite the warnings of some of what they described as “ghost treasures”, as it is not matched. This currency is no tangible asset.

And in early February, the announcement of the American company “Tesla” for electric cars sparked an investment of $ 1.5 billion in Bitcoin madly in trading on the currency and led it to new record levels, while it had already jumped by more than 400% in 2020, which witnessed the emergence of the Corona virus and many affected Traditional economic activities. During the first weeks of this year, the market value of digital currencies swelled to about 1.4 trillion dollars.

And investor sentiment around the world seemed more greedy in light of the Corona pandemic, as the 500 richest people in the world made last year about $ 1.8 trillion, according to the Bloomberg index of the world’s richest.

Bitcoin is no longer a haven for individual investors, but rather has lured many large corporations and financial institutions in the United States, to invade through the greed of quick profits the corridors of Wall Street.

A week after Tesla announced an investment of $ 1.5 billion in the cryptocurrency, Bitcoin continues to make its way through the world of traditional finance, to announce the American investment bank, “Morgan Stanley”, that it is studying the possibility of betting on Bitcoin, and Canada approved the first exchange-traded fund for these. Currency in North America.

And there are signs that more Wall Street heavyweights may be indulging in the cryptocurrency market. And Bloomberg said in a separate report that Counterpoint Global, a unit of the American investment bank Morgan Stanley, is exploring whether the cryptocurrency will be a suitable option for its investors, according to sources familiar with the subject, as moving forward with investments requires the company’s approval. And regulators.

In an interview with CNBC, Daniel Pinto, co-chair of investment bank JP Morgan, said that the client’s request had not yet saved Bitcoin, but added that he was sure that would change.

And the positions of investment banks and major financial institutions seem to be more volatile in dealing with Bitcoin and digital currencies in general. Earlier this month, JPMorgan warned in a note against major institutions following the approach of Tesla, which has invested heavily in Bitcoin. .

“The main problem with corporate treasurers following the Tesla model is the volatility of Bitcoin,” wrote strategic analysts at the bank led by Nikolaus Banegertzoglu.

But there is evidence that more companies are starting to add services for cryptocurrencies. BNY Mellon Corporation, working in the field of asset management and securities services, said that it has formed a new team working to develop a platform for deposit and management of traditional and digital assets, as it announced “Mastercard” company that it will start allowing cardholders to transact in certain cryptocurrencies on its network.

“Winning more institutional support is the key to getting Bitcoin on a higher path,” said Edward Moya, senior market analyst at Oanda Corp.

The temptations of the quick profit achieved by Bitcoin have overshadowed the hedging equations that global financial institutions that manage hundreds of billions of dollars in portfolios are supposed to rely on, as investors become more greedy to make huge fortunes by this year.

According to the JPMorgan bank’s various asset satisfaction measure, which is based on valuations and price momentum, investor sentiment seemed more eager to achieve more profit through stocks and virtual currencies, as global stocks added about $ 7 trillion since the beginning of the year, to Wall Street. Leading the market, as crash hour warnings louder.

With stock indices in the US market rising to new highs this week, the most famous quote by US billionaire Warren Buffett comes to mind: “Investors should feel fear when others become greedy.”

The Buffett Index is based on a simple calculation related to dividing the total market capitalization of US stocks by the total dollar value of the country’s GDP, which shows that the index for the first time exceeded its previous peak in 2019 and that there is a ballooning bubble, as the market value of US stocks jumped to more than Weaknesses estimated levels of GDP for the current quarter.

In contrast to the heated speculation in the stock markets and cryptocurrencies, China, which has the second largest economy in the world, appears to be more hedging and pathetic, while it is treading in many financial and investment activities aggressively towards grabbing the title of the largest economy from the United States. The state has taken steps towards curtailing companies operating in electronic financial services and setting investment controls to reduce any sudden fluctuations or shocks.


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