Its announcement represents an important step in the future of bitcoin, as it demonstrates that the barriers to its mass adoption are constantly being broken down.
First, it was MicroStrategy, now the Canadian company Snappa announced on Monday its decision to adopt bitcoin as a reserve asset. The firm’s CEO, Christopher Gimmer, is convinced that the company is doing better since deciding to move a “significant amount” of its cash reserves to buy BTC.
In a blog post titled “Why We Save Bitcoin as a Reserve Asset,” Gimmer notes that Snappa began accumulating BTC in March of this year. He claims that global economic uncertainty, the devaluation of the dollar, and the digital scarcity of the cryptocurrency pioneer influenced his decision.
More companies understand the language of bitcoin
A couple of weeks ago, as reported by CryptoNews, MicroStrategy announced that it had made a total investment of $ 250 million in Bitcoin. With that, it made history as the first publicly-traded company to choose BTC as its cash reserve.
In a thread through his Twitter account, the restaurant owner explained how difficult it was to stay afloat after the COVID-19 shutdown, when the staff was unwilling to report to work due to benefits received from government assistance programs.
The Tahini’s founder added that once he adopted Bitcoin, he continuously learned about its technology. He claims that he realized that Bitcoin is “a true free savings technology that stores wealth across time and space.” It was then that he decided to change all his capital to BTC “as it offers a much better alternative to save.”
Like Snappa, Tahini also does not intend to halt its adoption process, stating that it will continue to acquire bitcoin for years to come and perhaps forever.
Although Snappa is not as big as MicroStrategy, its announcement represents an important step in the future of bitcoin, as it demonstrates that the barriers to its mass adoption are constantly being broken down. Snappa’s statement draws attention to the point that they continue to “accumulate [bitcoin] coins” continuously and have no intention of “selling them soon.”
Bitcoin is catching the attention of businesses due to its resistance to inflation. In that sense, Canadian restaurants Tahini’s also announced that they allocated all their cash reserves to Bitcoin.
Chris Gimmer, Co-Founder, Snappa, published the reason(s) behind the company’s new ideology on his website.”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 questioned.
Gimmer made emphasis on possible uncertain conditions all over the world that could lead to a devaluation of traditional fiat. Moreover, He went on to express his disapproval of the Bank’s interest rate on the company’s account which is up to 0.45%. Holding cash in this way would drastically decrease the value of their holdings in few years coupled with the imminent inflation.
The Difference Between Bitcoin and Gold.
In his published note, Gimmer also spotted the difference between Bitcoin and gold. According to him, at this point, Bitcoin is an excellent choice for Snappa than gold due to its functionality.
He insisted that Bitcoin has outperformed gold in the areas of fungibility, verifiability, and divisibility. Although, the tall history of gold proves that the yellow metal is an excellent store of value. Bitcoin, on the other hand, looks promising, and its bloom creates a lot of opportunity for growth.
“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, “He stated. According to Gimmer, almost half of the company’s current cash reserves are now in Bitcoin, with plans to gather and invest more.
By: Jenson Nuñez
