Breaking

Tuesday, August 25, 2020

COMPANY CRYPTO RESERVE STATUS: SOFTWARE COMPANY SNAPPA EXCHANGE 40% CASH RESERVES FOR BITCOIN



   On Monday, Canadian graphics software company Snappa revealed that it holds bitcoin as a reserve asset. Snappa followed Microstrategy and Canadian restaurant chain Tahini's by deciding to turn its cash reserves into a rare crypto asset.


Ottawa-based graphics software company Snappa has joined the trend of companies converting cash reserves into bitcoin (BTC). The company revealed its decision on Monday, August 24, when the company's co-founder, Christopher Gimmer, wrote a blog post about the move.

In addition, Gimmer also spoke with journalist, Zack Voell, in a private chat and he detailed that Snappa allocated "40% of our cash reserves" into crypto assets. In a blog post entitled "Why We Hold Bitcoin as a Reserved Asset," Gimmer explains why the company made its decision.

“Would you rather save in a currency whose supply increases every year? Or do you prefer to save in a currency in which the terminal supply is programmatically fixed? Gimmer asked in the announcement's opening statement.

The company realized that this was an important consideration when the corporate bank "cut the interest rate on our 'high interest' savings account to 0.45% earlier this year."

Gimmer further stated:


" This means that the purchasing power of our Canadian and U.S. dollars is actually decreasing after adjusting for inflation. Fortunately, I believe we now have a far superior savings technology available to us. That technology is Bitcoin. "

The co-founder of Snappa underlined a number of reasons why the company decided to allocate bitcoins to the company's reserves. Much of the reason is due to global economic uncertainty, fiat devaluation, and the scarcity of digital Bitcoin.


Gimmer also mentioned the controversial stock-to-flow (S2F) theory in his announcement and believes that because Bitcoin is transparent, “we can actually measure Bitcoin's S2F with 100% certainty in the past and the future. "


Gimmer said that "many people" believe that quantitative easing (QE) and manipulation of government debt will lead to "widening asset price inflation and the wealth gap." The co-founder of Snappa thinks the trend of money creation and devaluation of fiat currencies will continue.


Gimmer's blog post also discusses the billion dollar company Microstrategy's purchase of 21,454 BTC for $ 250 million. Microstrategy also says when it shifts reserves, holding bitcoin (BTC) is far superior to holding the dollar.


"Having done my own research, I believe that a large amount of quantitative easing combined with fiscal stimulus will continue to result in currency depreciation," Gimmer concluded. "Apart from that, I hope the government will continue to do the same in an effort to overcome deflationary pressures in technology."


The co-founder of Snappa added: 

" In order to hedge this risk, we’ve chosen to adopt Bitcoin as a primary reserve asset on our balance sheet. "

  What do you think about Snappa converting 40% of its cash reserves into bitcoin? Let us know what you think in the comments section below. 

No comments:

Post a Comment