Not long ago we learned that the multi-billion dollar financial services firm MicroStrategy had decided to shift half of its reserve cash reserves to Bitcoin. Now another promising startup has decided to trade its cash reserve for Bitcoin.
Snappa, the Ottawa-based charting software company, has announced that it will also move a large portion of its cash reserve to Bitcoin.
Co-founder Chris Gimmer posted an explanation behind the company's new philosophy on his website.
Gimmer began his speech with a question. “Would you rather save money in a currency whose supply inflates every year? Or would you prefer to save in a currency whose terminal supply is set programmatically? "
He went on to explain that uncertain conditions around the world could lead to a devaluation of fiat money. He also voiced his complaint with the Snappa savings account after the bank lowered its interest rate to 0.45 percent. He explained that holding cash in this way would actually decrease the value of your holdings in the face of inflation over time.
In his letter, Gimmer made sure to also differentiate Bitcoin from gold. He explained that Bitcoin was a more sensible option than gold at the moment for Snappa due to its functionality.
He argues that Bitcoin has beaten gold in the areas of fungibility, verifiability, and divisibility. And although the long history of gold shows that it is a good store of value, the flourishing of Bitcoin creates many opportunities for growth.
“Bitcoin has only been around for 11 years and is still in the early stages of becoming a trusted store of value. However, this can be seen as an opportunity, as the future potential of Bitcoin is not yet included in the price.
He also told Coindesk that almost half of their current cash reserves are now in Bitcoin, but they plan to keep accumulating more.
“We are still accumulating coins and we do not plan to sell soon”, Gimmer told CoinDesk. "If we are right about where Bitcoin is going, then our allocation could be very high."
Morgan Creek Digital co-founder and prominent Bitcoin influencer Anthony Pompliano has caught on to the new move towards the bitcoin sector.
“Here is the third company that I know of that chose to convert its reserve assets from dollars to Bitcoin.
I still don't think this will become a popular trend for some time, but the thesis presented shows incredible macro understanding. "
Although these companies may not be household names, it is still telling that competitive companies are starting to value Bitcoin and even deem it necessary.