Reverse merger makes investing with Bitcoin easier

By Daniel Zo Bitcoin, NYSE, Tera

Bitcoin has a large number of believers at this moment in time, and that number is only expected to increase in the next couple of months. However, those who felt like betting on its future on the stock market have had quite a difficult time doing so until now. This is ought to change, as Tera Group Inc. will become a listed company on the stock market.

The group which has attracted quite a large number of fans has recently announced that it has initiated a reverse merger agreement with a NYC Stock Exchange-listed company known by the name of MGT Capital Investments. While their areas of work are quite different as MGT runs a couple of online gaming sites, this doesn’t really matter as long as they collaborate and have similar beliefs. The description of the terms of the deal mentions that Tera will have an executive controlling state after the merger. This means that MGT will issue 70% common stock shares over to Tera’s owners. In turn, by being listed on the New York Stock Exchange, those who believe in the future of bitcoin will be able to secure a safe investment in the company.

However, while this sounds like good news, many do not understand why the development of swaps and options trading with the help of the cryptocurrency represents an essential factor that can support its growth. Well, economic analysts have described that a phenomena like this will represent a critical step towards taming the volatile state of the currency, which, if kept unchanged will contribute to the collapse of the cryptocurrency, while also increasing exchange rate losses. Instead, making the price less subject to sudden changes will represent a factor of enticement, that’ll in turn, encourage more companies to invest in bitcoin and start accepting the coin as a form of payment, but also as a way of issuing them.

Ever since the services provided by Tera went public, the company has had a couple of ups and down. However, the fact that it has become the first platform which is regulated and accepts bitcoin derivatives has had an important influence on its popularity, thus attracting the interest of potential investors. Additionally, the platform has shown over a million ‘indications of interest’ from others, just like pointed out by their CEO, Christian martin.

At this moment in time, the products provided by Tera have a target audience consisting of institutional investors, such as exchanges, payment processors and insurers, all of which have a growing interest in the cryptocurrency. With the merge, most of the company’s clients will be both able to purchase services, but also invest in stocks. This will in turn bring the possibility for them to earn great amounts of revenue, especially once the coin’s value increases and settles to a certain amount. For example, Rick Day, the owner of Igot.com exchange believes that ‘$265 to $300 would be the ideal price point’- which leaves some room for the price to increase from its certain value, thus increasing the number of potential investors.

Based on everything that has been outlined so far, betting on the bitcoin market can turn out to be quite a wise idea, as both economic analysts, government institutions and exchange owners are confident that sooner or later, bitcoin will shape the world’s financial market. As mentioned by Rick Day, ‘there is definitely a market for Bitcoin and cryptocurrencies’ and this set-of-mind is exactly what’s likely to put Bitcoin-based companies up on the New York Stock Exchange, even if at this moment in time, they have to use adequate reverse-merge strategies to get there.