A report from the National Center for Public Policy Research, like a stone thrown into a calm lake, has caused ripples in the cryptocurrency world.
The report proposed that tech giant Amazon should invest part of its $88 billion in reserves in Bitcoin as a hedge against inflation, a suggestion that instantly ignited the market's imagination.
Under the demonstration effect of pioneers such as Tesla and MicroStrategy, technology giants with huge cash reserves such as Amazon and Microsoft have also begun to make moves to build their own BTC reserves.
NCPPR's latest report explicitly states that they have submitted a proposal to Amazon, recommending that it include BTC in its balance sheet by April 2025 as part of its corporate financial strategy.
As a free market think tank, NCPPR boldly suggests that Amazon invest part of its cash reserves into BTC to fend off the erosion of inflation.
The superiority of BTC compared to traditional assets and corporate bonds is evident; the report also cites successful cases from Tesla and MicroStrategy, further proving the attractiveness of BTC investments.
In the report, NCPPR points out that the current Consumer Price Index (CPI) as a measure of inflation stands at 4.95%, but this figure is significantly discounted and fails to accurately reflect the degree of currency devaluation; Tim Coatsman even stated that the real inflation rate may be as much as double the CPI.
Faced with this harsh reality, Amazon's $88 billion in cash and short-term cash equivalents is facing significant shrinkage risk.
Therefore, the report recommends that Amazon utilize Bitcoin as a hedge to protect shareholder value.
When comparing BTC price performance with corporate bonds, the report notes that as of December 6, 2024, BTC prices have risen 131% year-on-year, far exceeding the average increase of 126% for corporate bonds.
Over the past five years, BTC prices have skyrocketed by 1246%, far exceeding the average increase of 1242% for corporate bonds.
Despite BTC facing strong selling pressure from long-term holders at the $100,000 mark, news of Amazon purchasing coins would undoubtedly inject strong liquidity into this asset.
At this time, Microsoft shareholders are also about to vote on whether to include BTC in the company's balance sheet.
MicroStrategy Chairman Michael Saylor has presented a blueprint to Microsoft, aiming to bring an additional $5 trillion in value to Microsoft shareholders.
Some believe this marks the beginning of the BTC super cycle, with prices expected to surge past $200,000 by the end of 2025.
Standard Chartered Bank even predicts a high likelihood of Bitcoin reaching $200,000 by the end of 2025.
Jeff Kendrick from Standard Chartered Bank stated in a report to investors: if more institutions like U.S. retirement funds, global sovereign wealth funds, or potential U.S. strategic reserve funds accelerate their acceptance of BTC, we will be more optimistic about its prospects. In 2025, we expect institutional inflows to maintain or exceed the pace of 2024. MicroStrategy is completing its $4.2 billion three-year plan in advance, so its purchase volume in 2025 should be on par with or higher than that of 2024.
Currently, BTC prices have slightly dropped by 0.45%, trading at $99,786, with a market cap of approximately $1.97 trillion and a daily trading volume surging by 30%, exceeding $53 billion. Although this trading volume has cooled compared to historical highs of Bitcoin, it still shows strong market vitality.
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