The Canadian graphic-design company Snappa has shifted half of its fiat reserves into Bitcoin. reported by Snappa cofounder Chris Gimmer.
He explained the decision was driven by rising inflation risks. The bank where Snappa kept its savings cut the rate to 0.45%. The company fears that the fiat currency could devalue more quickly, eroding the real value of its reserves.
“Will you store money in a currency whose supply grows every year? Or would you prefer to store it in a currency whose supply is fixed at the protocol level?” — the blog notes.
Grimmer doubts Bitcoin’s supremacy over gold, but notes brighter prospects for the digital currency:
“Bitcoin has existed for 11 years and is still in the early stages of maturing as a reliable store of value. This can be viewed as an opportunity, since the future potential of Bitcoin has not yet been priced in.”
Here is the third company I know of choosing to convert their reserve assets from dollars to Bitcoin.
Still don’t believe this will become a popular trend for some time, but the thesis laid out shows incredible macro understanding.
h/t @MartyBent https://t.co/CY3tJeZhgR
— Pomp 🌪 (@APompliano) August 24, 2020
As reported earlier this month, the Nasdaq-listed MicroStrategy invested $250 million in Bitcoin. The company’s CEO Michael Saylor called it a more reliable alternative to the US dollar, although in 2013 predicted the imminent death of cryptocurrency.
Subsequently, said the founder of the Canadian Middle Eastern restaurant chain Tahini’s that reserves were moved into Bitcoin.
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