Treasury Management Firm Says CFOs Avoid Risk, Bitcoin Won’t Become a Corporate Vehicle

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If you need to be sure how early you are in Bitcoin, head over to Fortune.com. They interviewed Treasury Partners managing director Jerry Klein to find out if corporations are thinking of Bitcoin as a store of value. Short answer: “None of our clients have expressed an interest in Bitcoin. “Good to know. But let’s explore more.

Related reading | Stone Ridge’s 10k Bitcoin Bet Shows A Shift In US Business Sentiment

The article begins with alliteration and dishonesty:

“The leading cryptocurrency so far offers virtually no practical use. “

The implication here is that, for example, instant wealth transfer is not practical enough? We checked the linked article to find out exactly what the author was referring to. Starts with:

“In reality, Bitcoin has failed as a vehicle to buy things and failed its first big test as a safe harbor during the stock market crash last year.”

Oh yeah? Let’s ask the people with strong hands who held onto their Bitcoin until today. Not satisfied with the performance of Bitcoin? There is turbulence, but the port is safe. And on the other point. no one wants to be the next person to pay 10,000 BTC for two pizzas. Bitcoin is and will be in the price discovery phase for the foreseeable future. Buying things with him is not a priority.

BTC Price Chart, Last Year - TradingView

BTC price chart for the last year on KuCoin | Source: BTC / USDT on TradingView.com

But let’s get back to corporate cash

According to Klein, his clients’ portfolios typically consist of three types of investments: government bonds, money market funds, and corporate stocks. Klein says his priorities are safety and liquidity, and that risk is out of the question. Furthermore, the article continues, “companies want to avoid owning assets that risk even the slightest decline in value. “

Oh yeah? Isn’t Fiat currency devaluing in the United States at an annual rate of 15%? Isn’t that your own risk? To drive the point home, let’s quote the pioneer in showing Bitcoin on the company’s balance sheet. MicroStrategy CEO Michael Saylor recently told Time magazine:

“If you are going to make a rational investment decision today, whether you are a real estate investor, a stock investor, a bond investor, or simply a salaryman or treasurer, you must estimate the rate of monetary expansion over the next few years. eight years. We know there is a commitment to have a deficit and we know this commitment to stimulus ”.

That means the United States government is printing money like there is no tomorrow. And it will be for the foreseeable future.

Related reading | That’s why every business should buy Bitcoin, says Square’s CFO

You get to Bitcoin early

Among the crypto community, there is a fear that the arrival of MicroStrategy, Square and Tesla means that it is time for corporations. That the advantage that Bitcoin gave to little people is over. Fortune.com’s attitude in handling the issue suggests that the crypto community could be wrong. Large institutions have no idea what is happening. You probably have more time to stack those satellites.

And this is good.

Featured Image of Josh Hild on Unsplash – Charts by: TradingView