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On Monday, Canadian graphics software company, Snappa, revealed that it was holding bitcoin as a reserve asset. Snappa follows the firms Microstrategy and the Canadian restaurant chain Tahiniâs by deciding to convert cash reserves into the scarce crypto asset.
The graphics software firm Snappa based in Ottawa has joined the trend of companies converting cash reserves into bitcoin (BTC). The company revealed its decision on Monday, August 24, when the companyâs cofounder, Christopher Gimmer, wrote a blog post about the move.
Additionally, Gimmer also spoke with the journalist, Zack Voell, in a private chat and he detailed that Snappa allocated â40% of our cash reservesâ into the crypto asset. In the blog post titled âWhy Weâre Holding Bitcoin as a Reserve Asset,â Gimmer explains why the firm made its decision.
âWould you rather save money in a currency whose supply is inflating each year? Or would you rather save in a currency whose terminal supply is programmatically fixed?â Gimmer asked in the announcementâs opening statements.
The company realized that this was an important consideration when the firmâs bank âslashed the interest rate on our âhigh interestâ savings account to 0.45% earlier this year.â
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 cofounder of Snappa underlines a number of reasons why the firm decided to allocate bitcoin into the companyâs reserves. Much of the reasoning was due to global economic uncertainty, the devaluation of fiat, and Bitcoinâs digital scarcity.
Gimmer also mentioned the controversial stock-to-flow (S2F) theory in the announcement and believes that because Bitcoin is transparent, âwe can actually measure Bitcoinâs S2F with 100% certainty at any point in the past and at any point in the future.â
Gimmer said that âmany peopleâ believe that quantitative easing (QE) and the governmentâs manipulation of debt will lead to âasset price inflation and a widening wealth gap.â The cofounder of Snappa thinks this trend of money creation and the devaluing of fiat currencies will continue.
Gimmerâs blog post also discussed the billion-dollar firm Microstrategyâs purchase of 21,454 BTC for $250 million. Microstrategy also said when it shifted reserves that holding bitcoin (BTC) was far superior to holding dollars.
âAfter pouring over the research myself, I believe that massive amounts of quantitative easing combined with fiscal stimulus will continue to result in currency debasement,â Gimmer concluded. âIn addition, I expect governments to keep doing more of the same in attempts to fight the natural deflationary pressures of technology.â
The Snappa cofounder added:
In order to hedge this risk, weâve 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.
The post Corporate Crypto Reserve Status: Software Firm Snappa Swaps 40% Cash Reserves for Bitcoin appeared first on Bitcoin News.
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