Bitcoin Adoption is Here
Microstrategy Inc. (NASDAQ: MSTR), which describes itself as “the largest independent publicly-traded business intelligence company,” rocked the bitcoin community on August 11, 2020, when it announced the adoption of bitcoin as its primary treasury reserve. The company’s market cap is currently about $1.33 billion.
Microstrategy revealed that it has purchased 21,454 bitcoins at an aggregate purchase price of $250 million, inclusive of fees and expenses. “Our investment in bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” CEO Michael J. Saylor said.
A week later, Canada-based Middle Eastern restaurant chain Tahini’s has converted all of its cash reserves into bitcoin. The company says bitcoin offers a much better alternative to cash savings.
One of the restaurant’s owners explained what attracted him to bitcoin. He admitted that he came across the cryptocurrency many times in the past, but his idol at the time was Warren Buffett, who called it “rat poison,” so he did not pay attention to it.
He began to change his mind after reading an informative article and spent the next couple of months accumulating bitcoin in his personal account. He bought even more bitcoin after reading The Bitcoin Standard by Saifedean Ammous, The Price of Tomorrow by Jeff Booth, and articles by Plan B (Twitter handle @100trillionUSD). “That’s when we as a company decided to store all of our excess cash reserves into bitcoin as it offers a much better alternative to saving cash. We will continue to do that over the coming years and maybe forever if we don’t have a need for the fiat.”
Three days later, Canadian graphics software company, Snappa, revealed that it too has joined the trend, and has allocated 40% of it’s cash reserves into bitcoin as a reserve asset. “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?” Founder Christopher Gimmer, asked in the announcement’s opening statements.
I believe that it’s time for everybody, individual and company alike to be sure to begin holding bitcoin at these price levels.
