A survey conducted by the consulting firm Gartner found that the majority of finance executives do not plan to acquire bitcoin as a corporate asset in the course of 2021.
In an article published on its blog on February 16, the firm presented the results of the survey of 77 finance executives in the first days of this month, including 50 directors of financial companies. Although he did not give names or mention the places where he applied the questionnaire.
The results show that, of the total number of respondents, only 5% said they planned to hold bitcoin as an asset, while 84% assured that they do not plan to include the pioneer cryptocurrency as a corporate asset in the short term.
According to Gartner data, the majority of the group interested in bitcoin plans to acquire it in the next few years.
Even 16% of respondents willing to adopt cryptocurrency as part of their organization’s financial strategy were in no rush. 5% of respondents indicated that they would start having bitcoin in 2021, 1% said they would have bitcoin sometime in 2022-2023, and the remaining 9% indicated that they would start having bitcoin in 2024 or later.
The consultant indicates that the results were similar in both large and small organizations. The greatest interest was observed in companies linked to the technology sector. “Finance executives at private companies were the least favorable to bitcoin and only 7% said they would ever keep it,” he added.
Top fears: volatility and lack of regulation of bitcoin
Regarding the results of the survey, Alexander Bant, head of research at Gartner Finance explained that the volatility of the cryptocurrency was one of the reasons respondents were against investing in bitcoin. They rated the strategy as very “high financial risk.”
“It would be extremely difficult to mitigate the kind of price fluctuations observed in cryptocurrency in the last five years,” the executives told the firm. They also mentioned other problems, such as the slow adoption of BTC as a massively accepted form of payment, regulatory concerns, and a lack of experience in handling cryptocurrencies.
84% of those surveyed fear the volatility of bitcoin, 38% prefer not to invest due to its low adoption as a payment method, and 32% have doubts about the lack of regulation. Source: Gartner.
“71% of those surveyed said that one of the main things they would like to know is what others are doing with bitcoin. 78% want to hear more from regulators about bitcoin and better understand the risks involved in holding it, “the publication states.
In this regard, Bant recalled that this strategy is an incipient phenomenon. With this he referred to the fact that the decisions to invest in these types of assets, which have been made by companies such as MicroStrategy, only date from last year.
As reported by CriptoNoticias, the business intelligence company led by Michael Saylor made a first purchase of 21,454 bitcoins in August 2020. This, as part of a treasury strategy aimed at mitigating the negative effects of the global economic outlook, caused in large part for the coronavirus pandemic.
The initial amount invested by MicroStrategy, which by that date represented about $ 250 million, it has appreciated by more than 400% in six months due to the rise in the price of bitcoin. Purchases continued at the end of 2020 and early 2021.
This line of action that uses BTC as a safeguard of value similar to gold has been supported by companies such as Tesla, Ruffer and Grayscale, to name just a few. According to the information service Bitcoin Treasuries, corporations have allocated more than 45 billion dollars to invest in the first cryptocurrency.
However, Gartner’s Head of Research believes that the results of his survey they expose the fears that still underlie many entrepreneurs. “Financial leaders tasked with ensuring financial stability are not prone to speculative leaps into unfamiliar territory,” he said.
Along those lines, an eToro survey conducted earlier this year showed a trend similar to that of Gartner, after interviewing some 25 companies linked to the ecosystem.
Most of them cited regulatory uncertainty, insufficient presence of traditional custodial providers and low capitalization of the cryptocurrency market as the main factors hampering institutional participation in bitcoin.