Bitcoin on the Books

May 4, 2023
Big players are declaring Bitcoin as part of their reserve treasuries — is it time your company did the same?

Grayscale Investment, MicroStrategy, Galaxy Digital, Square, and most recently, the publicly traded Mode, have all disclosed significant treasury holdings in Bitcoin. They are the first to do so publicly; private holdings, undeclared by other firms, may also exist among the so-called ‘whales’ of Bitcoin, however speculative.

For those in the digital asset space, news such as this is always met with fanfare and optimism, with each nod of institutional level approval to Bitcoin seen as further legitimacy and credibility.

But beyond the speculation and hype which often accompanies these announcements, the real question is:

Why are Companies opting to put their treasury reserves in Bitcoin? And why now?

Wealth Preservation, and a Hedge against Inflation

As a reactive countermeasure to endless money printing, rising inflation, increased general global political instability and uncertainty, companies, businesses, and high net worth individuals are re-evaluating wealth allocation, risk exposure, and treasury reserve assets.

Traditionally in times like these, cash has always been king. However, with interest rates stalled, the threat of negative interest rates, and the pandemic anything but under control, the cash as king sentiment is now being institutionally questioned. Companies with large cash reserves on their books are seeing values dramatically eaten away akin to ‘melting ice cubes’, as once stated by MicroStrategy’s very own, Michael Saylor.

Speaking recently on ‘What Bitcoin Did?’ podcast, Michael Saylor CEO of MicroStrategy, a leading Business Intelligence firm that recently converted $450 million of its Treasury from cash to Bitcoin, stated, “Bitcoin is digital gold, it’s the hardest, smartest, fastest, strongest treasury asset… it’s the ultimate long-duration asset”.

For MicroStrategy Inc. and other major multinational companies, Bitcoin as a reserve asset is attractive not only due to its asymmetric risk/reward attributes and safe-haven asset status but also due to the technological properties under the hood that make Bitcoin anti-inflationary by its very design.

Bitcoin has its own immutable monetary policy written into its source code making it fundamentally deflationary. Roughly every four years, Bitcoin experiences a “Halving” event, meaning the rate at which new blocks are produced to the blockchain, is cut in half.

This “Halving”, coupled with Bitcoin’s capped finite supply of 21 million coins, with no new bitcoins able to be minted after 2140, makes it an ideal hedge against rampant Central Bank money printing policies, and the resulting inflation and currency devaluation.

More than just Digital Gold

Widely held views that Bitcoin is a virtual manifestation of gold and a long-term store of value are certainly true, but to a point. For companies adopting Bitcoin to preserve asset value, it has the real potential to fundamentally change and revolutionize how a company operates.

Unlike physical gold, using Bitcoin as a payment settlement method is easy, cheap, not to mention fast. Non-reliance on any third-party intermediaries means funds can be sent instantly to anyone, anywhere, anytime, with settlement times in hours or even minutes, depending on network congestion.

Thanks to Bitcoin’s publicly visible ledger, funds can be sent and transactions closely monitored, giving unrivaled transparency. Barring human error, Bitcoin’s transaction network is as secure as any traditional banking institution and can attest to never being hacked, despite attempts. Because its transaction network is run by thousands of nodes, with more constantly added, it cannot and will never be ‘switched off’.

All this culminates in creating confidence needed to conduct business in a safe and stable medium of exchange, while also reducing exposure to cyber and liquidity risk.

Transaction fees, if compared with sending traditional fiat are negligible, saving businesses untold amounts in commissions and middle-men fees. Funds can be sent to anyone with a smartphone making paying for goods and services or employees in Bitcoin all-inclusive, apolitical, and geographically neutral, ideal for our globalized and yet fractured modern world.

Increasing institutional investment, and maturing global regulations have seen 2020 as one of Bitcoins least volatile years, further legitimizing and justifying it as an ever-maturing asset with real-world use and application.

The rise of the Decentralize Worker

Utilizing Bitcoin beyond a means of value storage and inflationary hedge can bring tangible benefits to multinational companies. Bitcoin being so cheap to convert and easy to move means companies are less geographically constrained and are therefore able to hire the best talent and pay wages in Bitcoin, creating a decentralized workforce of sorts. With the Coronavirus pandemic deepening, and with remote-working fast becoming the new standard, having a decentralized workforce post-Covid is set to become more commonplace.

And thanks in part to the rise of PayPal style payment platform services, such as BitPay and others, the whole process is now easier and more accessible. Using such a platform means no conversion rates or fees for you as an employer to worry about, as the platform handles it, removing all possible pain points. You put the currency in, the employee gets the currency out.

Final Thoughts

Using Bitcoin as a primary reserve asset allows companies to participate in a new global monetary system. By using an apolitical medium of exchange, business operations would be less averse to the effects of major news events, policymakers, and political decisions.

The clear advantage for multinational companies would have from an operational standpoint is the ability to move funds cheaper, faster, and in a more secure way, reducing costs and improving business efficiency. The compounding effect of this would see increased agility, competitiveness, and a bolstered ability to continue to hire the best talent around the world regardless of geographic location, political jurisdiction, or current world events.

Digital asset News, education and analysis

News Roundup — MakerDAO Founder Unveils Two New Stablecoins: NewStable and PureDAI
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 20, 2024
News Roundup — Tether Slams Deutsche Bank over Suggestion its Stablecoin Could Fail
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 14, 2024
News Roundup — Orange: A Bitcoin-Based Decentralized Identity Platform
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 6, 2024
News Roundup — After 6-year hiatus, Stripe to start taking crypto payments, starting with USDC stablecoin
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 29, 2024
News Roundup — Bitcoin Halving Officially Complete
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 22, 2024
News Roundup — Hong Kong approves spot Bitcoin ETFs
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 15, 2024
News Roundup — Ripple to launch US dollar stablecoin, aims to compete with USDT and USDC
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 8, 2024
News Roundup — SBF Is Going to Prison for 25 Years
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 1, 2024
News Roundup — SEC investigates Ethereum Foundation - Is ETH a Security?
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
March 25, 2024
News Roundup — Craig Wright Is Not Satoshi!
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
March 18, 2024
News Roundup — Nexo puts recent woes behind it with Middle East license approval
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
March 11, 2024
News Roundup — Bitcoin Tops $65K, Inches Closer to Lifetime Peak
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
March 4, 2024
News Roundup — Bitcoin ETFs Notch Best-Ever Week with $2.5bn Haul
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
February 26, 2024
News Roundup — MicroStrategy listing in the S&P 500 index could expose millions to Bitcoin
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
February 19, 2024
News Roundup - Ethereum Set for Boost as Dencun Upgrade Gets a Date
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.
February 12, 2024
News Roundup — UAE makes first cross-border payment using digital currency
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
February 5, 2024
News Roundup—FTX sold nearly $1 billion of Grayscale spot bitcoin ETF shares
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 29, 2024
News Roundup — Timeline set for Craig Wright trial on Satoshi Nakamoto identity claim
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 22, 2024
News Roundup — US SEC Approves Bitcoin ETFs in Watershed Moment for Industry
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 15, 2024
News Roundup — BlackRock names JPMorgan as authorized participants for its proposed bitcoin ETF
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 8, 2024
News Roundup — MicroStrategy bags 14,620 Bitcoin ahead of Potential ETF Approval
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 2, 2024
News Roundup — ‘In Argentina, contracts can be settled in Bitcoin’ — foreign minister
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
December 26, 2023
News Roundup — Gensler says SEC is taking ‘new look’ at spot bitcoin ETF proposals
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
December 18, 2023
News Roundup — Talks between SEC and Bitcoin ETF issuers in 'Advanced' Stages
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
December 11, 2023
News Roundup — MicroStrategy Piles on Bitcoin, Acquiring 0.90% of Circulating Supply
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
December 4, 2023
News Roundup — Javier Milei Is Now President In Argentina With A Pro-Bitcoin Agenda
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
November 27, 2023
News Roundup — Dubai’s chief crypto regulator exits as VARA prepares to fine major companies
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
November 20, 2023
News Roundup — UAE Cracks Down on Unlicensed Crypto Firms
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
November 13, 2023
News Roundup — 'Crypto King' Sam Bankman-Fried faces decades in jail after guilty verdict
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
November 6, 2023
News Roundup — BlackRock Preps for Bitcoin ETF Launch
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 30, 2023
News Roundup — Middle East Regulatory Clarity Drives Crypto Industry Growth
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 23, 2023
News Roundup — Bitcoin Lightning Network Growth Surges by 1,200% in 2 Years
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 16, 2023
News Roundup — Binance hit with class-action lawsuit over alleged market manipulation
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 9, 2023
News Roundup — UAE Sees Major Institutional Influx of Crypto Transactions
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 2, 2023
News Roundup — Binance.US Trading Volume Tumbles While SEC Dispute Heats Up
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
September 25, 2023
News Roundup — Bitcoin Miner Returns the $510,000 Overpaid Transaction Fee
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
September 18, 2023
News Roundup — ‘A Huge Deal’ - Visa Reveals Crypto Payments Bombshell That Could Cause Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Solana, Tron And Toncoin Price Chaos
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
September 11, 2023
News Roundup — All cryptocurrency businesses in Dubai come 'VARA-certified'
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
September 4, 2023
News Roundup — Craig Wright May Be Admitting That He Stole 80,000 Bitcoin
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
August 28, 2023
News Roundup — Europe's First Spot Bitcoin ETF Lists in Amsterdam
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
August 21, 2023
News Roundup — Sam Bankman-Fried Is Going to Jail
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
August 14, 2023
News Roundup — Bitcoin Is Not Crypto, The SEC Confirms
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
August 7, 2023
News Roundup — Crypto bills pass congressional committee in ‘huge win’ for US crypto
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 31, 2023
News Roundup — RFK Jr. Announces Bold Plan to Back Dollar With Bitcoin, End Bitcoin Taxes
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 24, 2023
News Roundup — Judge rules XRP is not a security in SEC's case against Ripple
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 17, 2023
News Roundup — BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 10, 2023
News Roundup — SEC Inaction on Spot Bitcoin ETF a 'Complete and Utter Disaster'
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 3, 2023
News Roundup — Binance Officially Exits UK After The Netherlands And Cyprus
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
June 26, 2023
News Roundup — BlackRock files for spot bitcoin ETF, with Coinbase as a crypto custodian
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
June 19, 2023
News Roundup — SEC Sues Crypto Exchange Binance and CEO Changpeng Zhao
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
June 15, 2023
News Roundup — Tether’s Market Cap Reaches New High, Exceeding $83.2B
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
June 6, 2023
News Roundup — 700M Users Of Telegram Can Now Buy, Receive, Withdraw and Trade Bitcoin P2P
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 23, 2023
News Roundup — Smart Contracts Have Arrived on the Bitcoin Blockchain
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 15, 2023
Bitcoin on the Books
Why has Institutional Investment in Bitcoin Skyrocketed in 2020?
May 4, 2023
The Merge is (Almost) Here
The long awaited ETH merger is finally drawing closer, with only a few days left until the expected date of 15th September 2022.
May 4, 2023
El Salvador’s Bitcoin Moment
With history in the making as El Salvador makes Bitcoin legal tender on September 7th, 2021, we examine the implications for the country’s financial system, its people, and the global remittance industry.
May 4, 2023
Global Workforces need a truly Global Currency
Running a multinational business? It’s time to pay your employees in Virtual Assets!
May 4, 2023
The Fall of TerraUSD, The not so Stable Stablecoin
A retrospective look at the spectacular TerraUSD/LUNA collapse and the possible reasons behind their incredible fall from grace.
May 4, 2023
Bitcoin’s Latest Upgrade — Taproot
Everything about you wanted to know about the Taproot upgrade, but were too afraid to ask!
May 4, 2023
The Other Bitcoins — A Closer Look at Bitcoin’s Hardforks
For any newcomer to Digital Assets, discovering there are other ‘types’ of Bitcoin can be confusing.
May 4, 2023
The Island of Yap & Blockchain
A look at the fascinating Island of Yap and Rai stones in what is thought to be the worlds very first use of a distributed ledger.
May 4, 2023
The Short, but Explosive History of Bitcoin
The plot line reads like a prize winning novel — an anonymous creator, economic catastrophe, FBI investigations, and… pizza!?
May 4, 2023
Bitcoin and the Rules of Consensus
Is it really possible to reach an agreement between people we’ve never met before? Using the Nakamoto Consensus it is…
May 4, 2023
Grow your business.
Today is the day to build the business of your dreams. Share your mission with the world — and blow your customers away.
Start Now