Topic: Another company buying bitcoin as capital allocation strategy - page 2. (Read 248 times)
It is become necessary to diversify the business and not to rely solely on fiat. With daily news about inflation and possible economic met down due to the pandemic. It is a wise decision to do in order to mitigate the effect this hardship might bring if it eventually happens. I also wrote an article about a company that converted the business profit into crypto.
A lot of valid points. Anyone with 100k spare cash could consider holding 5 oz of gold and 1 btc keep the rest in cash. May not be the best guess but I think it is better than all cash.
This would be more noteworthy if the research was coming from a hedge fund or someone more averse to finance in some way.
But a company offering services online trying to ring the bell about inflation isn't gonna cut it for me...
Currency competition among FIAT money would have existed either way, with bitcoin or not. Even right now, with a global crisis situation affecting the entire world and its economy, not all central banks follow the same strategies. In the U.S., USD lost some value as the government went way over budget with the FED essentially agreeing to print money and follow along. However, USD has mostly been losing value against EUR, with the ECB following an arguably much less aggressive strategy to protect Euro members from Coronavirus' effects.
It's good that an influential person in a company got enlightened towards BTC, but I don't see this as a trend to be honest.
Being a cash reserve for companies in my honest view isn't where BTC's peak utility can be drawn from.
Fintech in Europe for instance already has much better solutions that companies can utilize. Any company can put its cash in interest accounts all across the continent with a simple app, and utilize a much more rewarding no-risk investment this way. In theory, the U.S. could follow suit in that by loosening regulation on monetary transfers and by providing tools for banks to make wire transfers to certain countries abroad more frictionless. Bitcoin on the other hand, with all of its volatility, would put whatever company holds it in much more risk than inflation for USD ever had. This problem is already being handled to an extent by utilizing non-bank payment solutions. But I still think it's more likely that in the future we'll see more companies demanding better banking in the U.S. other than adopting BTC to hold.
But a company offering services online trying to ring the bell about inflation isn't gonna cut it for me...
Currency competition among FIAT money would have existed either way, with bitcoin or not. Even right now, with a global crisis situation affecting the entire world and its economy, not all central banks follow the same strategies. In the U.S., USD lost some value as the government went way over budget with the FED essentially agreeing to print money and follow along. However, USD has mostly been losing value against EUR, with the ECB following an arguably much less aggressive strategy to protect Euro members from Coronavirus' effects.
It's good that an influential person in a company got enlightened towards BTC, but I don't see this as a trend to be honest.
Being a cash reserve for companies in my honest view isn't where BTC's peak utility can be drawn from.
Fintech in Europe for instance already has much better solutions that companies can utilize. Any company can put its cash in interest accounts all across the continent with a simple app, and utilize a much more rewarding no-risk investment this way. In theory, the U.S. could follow suit in that by loosening regulation on monetary transfers and by providing tools for banks to make wire transfers to certain countries abroad more frictionless. Bitcoin on the other hand, with all of its volatility, would put whatever company holds it in much more risk than inflation for USD ever had. This problem is already being handled to an extent by utilizing non-bank payment solutions. But I still think it's more likely that in the future we'll see more companies demanding better banking in the U.S. other than adopting BTC to hold.
Snappa looks to be a very small, very new company. If they've bought bitcoin to keep as their cash reserve, it's still nowhere near the importance of MicroStrategy doing the same in terms of newsworthiness. Protonmail and Overstock.com also keep bitcoin in reserve too, as far as I know, so this isn't even a new "thing" except for the part where companies are buying and holding bitcoin instead of cash.
I don't mean to downplay the importance of these stories, though. I don't know if it's the best move for a corporation to be keeping an asset as volatile as bitcoin as its reserve form of money, but it certainly says a lot about how far bitcoin has come in terms of mainstream adoption. It'll be interesting to see if these strategies work out well for the corporations that adopted them, and only time will tell. If bitcoin crashes, I don't think the shareholders of MSTR or whoever owns Snappa are going to be very happy.
I don't mean to downplay the importance of these stories, though. I don't know if it's the best move for a corporation to be keeping an asset as volatile as bitcoin as its reserve form of money, but it certainly says a lot about how far bitcoin has come in terms of mainstream adoption. It'll be interesting to see if these strategies work out well for the corporations that adopted them, and only time will tell. If bitcoin crashes, I don't think the shareholders of MSTR or whoever owns Snappa are going to be very happy.
The company name is: https://snappa.com/
It's nice to see more companies starting to think seriously about inflation.
I don't think it's news that will push the price forward, but it might give the average user an opportunity to rethink about their investment.
https://chrisgimmer.com/bitcoin-reserve-asset/
The article is long but well worth reading as it is an indication that they research well before considering investing.
It's nice to see more companies starting to think seriously about inflation.
I don't think it's news that will push the price forward, but it might give the average user an opportunity to rethink about their investment.
https://chrisgimmer.com/bitcoin-reserve-asset/
The article is long but well worth reading as it is an indication that they research well before considering investing.
will read this later, but thank you for link.
The company name is: https://snappa.com/
It's nice to see more companies starting to think seriously about inflation.
I don't think it's news that will push the price forward, but it might give the average user an opportunity to rethink about their investment.
https://chrisgimmer.com/bitcoin-reserve-asset/
The article is long but well worth reading as it is an indication that they research well before considering investing.
It's nice to see more companies starting to think seriously about inflation.
I don't think it's news that will push the price forward, but it might give the average user an opportunity to rethink about their investment.
https://chrisgimmer.com/bitcoin-reserve-asset/
The article is long but well worth reading as it is an indication that they research well before considering investing.
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