gold has typically played in history. Gold is a $7 trillion market versus Bitcoin, which is about one-tenth the size. And as Bitcoin gains greater traction as a store of value, its share of attention and fund flows will increase.
publicly listed firms. How can other firms continue to claim Bitcoin as not suitable when one of the 10 largest corporations in America is buying it for its treasury?
3
2
BITCOIN OFFERS A DIGITAL ALTERNATIVE TO CASH
BITCOIN IS USED IN CORPORATE TREASURY PURCHASES
Cash, essential to financial freedom by allowing for anonymous transactions, is in terminal decline. This is regrettable... Cash enables private, free exchanges of money outside state surveillance. This trend is not new. For decades, credit-card payments have chipped away at cash’s role in our economy and the pandemic accelerated that trend as reports (later proved false) that cash was a carrier of COVID-19 caused many merchants to switch to card-only. While cash is still widely used in some parts of the world, the trend is against it. In the two largest developing economies, China and India, governments have taken steps to reduce cash in the economy. In China, the government wants to replace many transactions with a central bank digital alternative to keep a closer eye on how people spend money. In India, with a clumsy attempt to limit the role of cash in the informal economy, the government took high-denomination notes out of circulation. The demise of cash highlights the need for a digital alternative to ensure private, safe payments between individuals. For example, in a China without cash, your access to credit, payments, and savings can simply be switched off if you disagree with the government, a form of financial de-platforming. Bitcoin is the solution. This also leads us to No. 4:
In the fall of 2020, MicroStrategy, a medium-sized Nasdaq-listed software company, ushered in a new era of corporate cash management by buying Bitcoin to sit alongside its cash and other short-term investments. MicroStrategy wasn’t the first to do it... The website bitcointreasuries.org lists over 20 public companies that own some Bitcoin. But MicroStrategy’s decision set off a spark that has spread like wildfire and captured the imaginations of more than a few CEOs and corporate treasurers. The decision to buy Bitcoin also sent MicroStrategy’s stock soaring as investors saw the business as an indirect way to get Bitcoin exposure. This trend kicked into high gear on February 8 when Tesla revealed it had purchased $1.5 billion worth of Bitcoin for its treasury. Bitcoin rose another 10% or more following the news. The decision first by MicroStrategy and later Tesla cemented Bitcoin as a viable cash equivalent (and alternative) for big Investment is a precondition to utility, and mainstream investors are increasingly buying Bitcoin as a portfolio diversifier and as a digital gold.
American Consequences
47
Made with FlippingBook - professional solution for displaying marketing and sales documents online