{"id":462942,"date":"2021-05-04T00:56:18","date_gmt":"2021-05-04T00:56:18","guid":{"rendered":"https:\/\/uniquehot.com\/?p=462942"},"modified":"2024-06-11T13:55:28","modified_gmt":"2024-06-11T13:55:28","slug":"treasury-management-firm-says-cfos-avoid-risk-bitcoin-wont-become-corporate-vehicle","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/treasury-management-firm-says-cfos-avoid-risk-bitcoin-wont-become-corporate-vehicle\/","title":{"rendered":"Treasury Management Firm Says CFOs Avoid Risk, Bitcoin Won’t Become Corporate Vehicle"},"content":{"rendered":"
If you need reassurance on just how early you\u2019re to Bitcoin, <\/span>head to Fortune.com<\/span><\/a>. They interviewed the managing director of Treasury Partners, Jerry Klein, to find out if corporations are thinking about Bitcoin as a store of value. Short answer, \u201c<\/span>Not one of our clients has expressed interest in Bitcoin.<\/span><\/i>\u201d Good to know. But let\u2019s explore further.<\/span><\/p>\n Related Reading | Stone Ridge\u2019s 10k Bitcoin Bet Shows Changing Sentiment of Corporate America<\/a><\/strong><\/em><\/p>\n The article begins with alliteration and dishonesty:<\/span><\/p>\n \u201c<\/span>The lead cryptocurrency so far offers practically no practical uses.<\/span><\/i>\u201d<\/span><\/p><\/blockquote>\n Is the implication here that, for example, instantaneous wealth transfer is not practical enough? We consulted the linked article to find out exactly what the author meant. It starts with:<\/span><\/p>\n \u201cIn reality, Bitcoin has flopped as a vehicle for buying things, and it failed in its first big test as a safe harbor during the past year’s stock market crash.\u201d<\/span><\/p><\/blockquote>\n Oh yeah? Let\u2019s ask the people with strong hands that held on to their Bitcoin until today. Are they not satisfied with Bitcoin\u2019s performance? There\u2019s turbulence, but the harbor is safe. And about the other point. nobody wants to be the next person who pays 10.000 BTC for two pizzas. Bitcoin is and will be in price discovery phase for the foreseeable future. Buying things with it is not a priority.<\/span><\/p>\n <\/p>\n According to Klein, his client\u2019s portfolios usually consist of three kinds of investments: government bonds, money-market funds, and corporate stocks. Klein claims that their priorities are safety and liquidity, and that risk is out of the question. Furthermore, the article continues, \u201c<\/span>companies want to avoid owning assets that risk even the slightest decline in value.<\/span><\/i>\u201d\u00a0<\/span><\/p>\n Oh yeah? Isn\u2019t Fiat currency in the United States devaluing at a 15% annual rate? Doesn\u2019t that pose a risk of its own? To drive the point home, let\u2019s quote the pioneer of displaying Bitcoin in the company\u2019s balance sheet. MicroStrategy\u2019s CEO Michael Saylor recently<\/span> told Time<\/span><\/a> magazine:\u00a0<\/span><\/p>\n \u201cIf you\u2019re going to make a rational investment decision today, whether you\u2019re a real estate investor, a stock investor, a bond investor, or just a wage earner or you\u2019re a treasurer, you have to estimate the rate of monetary expansion for the next eight years. We know there\u2019s a commitment to run deficits, and we know this commitment to stimulus.”<\/span><\/p><\/blockquote>\n That means the US government is printing money like there\u2019s no tomorrow. And will be for the foreseeable future.\u00a0<\/span><\/p>\n Related Reading | This is why all companies should buy Bitcoin, says Square\u2019s CFO<\/a><\/strong><\/em><\/p>\n Among the crypto community, there is a fear that the arrival of MicroStrategy, Square, and Tesla means that it\u2019s corporations time. That the head-start that Bitcoin gave to the little people is over. Fortune.com\u2019s attitude while handling the subject suggests that the crypto community might be wrong. Big institutions have no idea what’s going on. You probably have more time to stack those Sats.\u00a0<\/span><\/p>\n And that is a good thing.<\/span><\/p>\n If you need reassurance on just how early you\u2019re to Bitcoin, head to Fortune.com. They interviewed the managing director of Treasury Partners, Jerry Klein, to find out if corporations are thinking about Bitcoin as a store of value. Short answer, \u201cNot one of our clients has expressed interest in Bitcoin.\u201d Good to know. But let\u2019s explore further. Related Reading | Stone Ridge\u2019s 10k Bitcoin Bet Shows Changing Sentiment of Corporate America The article begins with alliteration and dishonesty: \u201cThe lead cryptocurrency so far offers practically no practical uses.\u201d Is the implication here that, for example, instantaneous wealth transfer is not practical enough? We consulted the linked article to find out exactly what the author meant. It starts with: \u201cIn reality, Bitcoin has flopped as a vehicle for buying things, and it failed in its first big test as a safe harbor during the past year’s stock market crash.\u201d Oh yeah? Let\u2019s ask the people with strong hands that held on to their Bitcoin until today. Are they not satisfied with Bitcoin\u2019s performance? There\u2019s turbulence, but the harbor is safe. And about the other point. nobody wants to be the next person who pays 10.000 BTC for two pizzas. Bitcoin is and will be in price discovery 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\u2019s get back to corporate cash According to Klein, his client\u2019s portfolios usually consist of three kinds of investments: government bonds, money-market funds, and corporate stocks. Klein claims that their priorities are safety and liquidity, and that risk is out of the question. Furthermore, the article continues, \u201ccompanies want to avoid owning assets that risk even the slightest decline in value.\u201d\u00a0 Oh yeah? Isn\u2019t Fiat currency in the United States devaluing at a 15% annual rate? Doesn\u2019t that pose a risk of its own? To drive the point home, let\u2019s quote the pioneer of displaying Bitcoin in the company\u2019s balance sheet. MicroStrategy\u2019s CEO Michael Saylor recently told Time magazine:\u00a0 \u201cIf you\u2019re going to make a rational investment decision today, whether you\u2019re a real estate investor, a stock investor, a bond investor, or just a wage earner or you\u2019re a treasurer, you have to estimate the rate of monetary expansion for the next eight years. We know there\u2019s a commitment to run deficits, and we know this commitment to stimulus.” That means the US government is printing money like there\u2019s no tomorrow. And will be for the foreseeable future.\u00a0 Related Reading | This is why all companies should buy Bitcoin, says Square\u2019s CFO You\u2019re early to Bitcoin Among the crypto community, there is a fear that the arrival of MicroStrategy, Square, and Tesla means that it\u2019s corporations time. That the head-start that Bitcoin gave to the little people is over. Fortune.com\u2019s attitude while handling the subject suggests that the crypto community might be wrong. Big institutions have no idea what’s going on. You probably have more time to stack those Sats.\u00a0 And that is a good thing. Featured Image by Josh Hild on Unsplash – Charts by: TradingView<\/p>\n","protected":false},"author":539,"featured_media":462943,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12436,5651,3],"tags":[83658,83660,83659,81299,3946,83661,14164,4096],"class_list":["post-462942","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-and-tech","category-bitcoin","category-news","tag-corporate-cash","tag-fortune-com","tag-institutional-funds","tag-microstrategy","tag-square","tag-stack-sats","tag-store-of-value","tag-tesla"],"acf":[],"yoast_head":"\nBTC price chart for the last year on KuCoin | Source: BTC\/USDT on TradingView.com<\/a><\/pre>\n
But let\u2019s get back to corporate cash<\/span><\/h2>\n
You\u2019re early to Bitcoin<\/span><\/h2>\n
Featured Image by Josh Hild<\/a> on Unsplash<\/a> - Charts by: TradingView<\/a><\/pre>\n","protected":false},"excerpt":{"rendered":"