If you want to be sure how early you are on bitcoin, visit Fortune.com. They interviewed Treasury Partners chief executive Jerry Klein to find out if companies view Bitcoin as a store of value. Short answer: “None of our customers have shown interest in Bitcoin.” Good to know. But let’s explore further.
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The article starts with alliteration and dishonesty:
“The previous cryptocurrency offers practically no practical uses.”
Does this mean that, for example, an immediate wealth transfer is not practical enough? We consulted the linked article to find out what the author meant exactly. It starts with:
“In reality, Bitcoin flopped as a vehicle for buying things and failed its first major test as a safe haven during last year’s stock market crash.”
Oh yeah? Let’s ask the people with strong hands who have held onto their Bitcoin to this day. Are you not satisfied with the performance of Bitcoin? There is turbulence, but the port is safe. And the other point. nobody wants to be the next person to pay 10,000 BTC for two pizzas. Bitcoin is in the pricing phase for the foreseeable future. Buying things with it is not a priority.
BTC price chart for the last year on KuCoin | Source: BTC/USDT on TradingView.com
But let’s get back to corporate money
According to Klein, his clients’ portfolios typically consist of three types of investments: government bonds, money market funds, and corporate stocks. Klein claims that her priorities are safety and liquidity and that risk is out of the question. In addition, the article goes on to say, “Companies want to avoid owning assets that risk even the slightest depreciation.”
Oh yeah? Isn’t the fiat currency in the US devaluing 15% annually? Isn’t that your own risk? To get the point home, let’s quote the pioneer of how Bitcoin was featured on the company’s balance sheet. Michael Saylor, CEO of MicroStrategy recently told Time Magazine:
“If you want to make a rational investment decision today whether you are a real estate investor, a stock investor, a bond investor, or just a wage earner or treasurer, you need to estimate the rate of monetary expansion for the next eight years. We know there is an obligation to go short, and we know that obligation to incentivize. ”
That means the US government is printing money like there’s no tomorrow. And will be for the foreseeable future.
Related reading | This is why all companies should buy Bitcoin, says Square’s CFO
You’re early on at bitcoin
Fear among the crypto community is that the arrival of MicroStrategy, Square, and Tesla means it’s time for business. That the head start that Bitcoin gave ordinary people is over. Fortune.com’s stance in dealing with the issue suggests that the crypto community may be wrong. Big institutions have no idea what is going on. You probably have more time to stack these sats.
And that’s good.
Featured Image by Josh Hild on Unsplash - Charts by: TradingView