/Why more companies are betting on bitcoin as a worthy reserve asset

Why more companies are betting on bitcoin as a worthy reserve asset

  • MicroStrategy, a $1 billion financial services company, recently decided to shift half of its stockpile of reserve cash into the leading cryptocurrency.
  • To that end, the Ottawa based graphics software company, Snappa has done the same. 

MicroStrategy, a $1 billion financial services company, recently decided to shift half of its stockpile of reserve cash into the leading cryptocurrency. To that end, the Ottawa based graphics software company, Snappa has done the same. This promising company announced recently that it will move a large portion of its reserve into bitcoin just like MicroStrategy did.

Chris Gimmer, the co-founder of the company posted his reasoning behind the move on the firm’s website.

On the website, he asked a simple question:

“Would you rather save money in a currency whose supply is inflating each year? Or would you rather save in a currency whose terminal supply is programmatically fixed?”

He added that with the current situation of COVID-19 leading to a devaluation of Fiat money such as the US dollar, and he’s like this only makes sense in the climate. Expressing his thoughts on the savings account for Snappa, he said that after the bank cut their interest rate to 0.45%, holding cash in this way would eventually decrease the value of the holdings compared to inflation over time.

Over the past 11 years (since bitcoin was created), the leading cryptocurrency has constantly been compared to its precious-metal counterpart, gold. The co-founder made it clear that bitcoin was a much more sensible choice of investment than gold for the company, especially at this time. 

He went on to argue that the flagship cryptocurrency has beaten gold when it comes to divisibility, verifiability and more. However, even though gold has a rich history proving that it is a worthy store of value, there is still a lot of opportunity for bitcoin to grow.

He went on to say:

“Bitcoin has only been around for 11 years and is still in the very early stages of becoming a trusted store of value. This, however, can be viewed as an opportunity since the future potential of Bitcoin is not yet priced in.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!