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121 sats \ 6 replies \ @grayruby 14 Aug \ on: Corporate Bitcoin Adoption Wave Coming econ
Agree. I don't think people are not paying enough attention to this. We are already seeing some smaller companies allocate. Miners are issuing debt and shares to buy more bitcoin to hold. Everyone is so focused on economic data and the election and the movements of MT Gox coins and US gov coins. It's all important in the short term but the long term trend is clear.
I know I hadn't been thinking about this point. If it's such a problem for companies, though, why weren't they holding gold or other non-security assets?
I'm sure this will eventually be a big deal, but I'm not sure it's top of mind for most businesses.
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Most companies are focused on turning cash into earnings via production and risk not hoarding currencies (of any kind). The ones that buy government bonds are doing so mostly with short-term maturities for liability-matching purposes. That is, they have to buy something in 45 days, so they buy 44 days of commercial paper, to make a few basis points between now and then.
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It makes more sense to me that businesses will start holding bitcoin when they actually need it for transactions, which won't happen until we're quite a bit further down the adoption curve.
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That's true. Presumably, they could hold gold certificates, though.
I'm wondering if they aren't just thinking about the problem differently. They have a bunch of idle dollars and might be looking for a return on them, more so than a store of value.
That wouldn't keep them out of Bitcoin, but it's a little different than Krattert was framing it.