Christopher Gimmer, the CEO of graphic design company Snappa, says the firm has been accumulating bitcoin since March.
Snappa joins a handful of other companies who have realized the importance of the fixed-supply asset in an uncertain macro climate.
The rampant money creation that’s gone into overdrive, thanks to the coronavirus, may be promoting the alpha crypto. Several companies have cited fears around extreme fiat devaluation as an influencing factor.
Snappa the Latest Company to Go ‘Down the Rabbit Hole’
Gimmer says that he has spent “hundreds of hours” researching bitcoin. In a recent post on his personal website, he made it clear that he has done his homework on the emerging safe-haven asset.
Another company has decided to diversify its cash holdings into bitcoin to avoid a loss of purchasing power via inflation.@SnappaHQ is making a calculated long-term move that should pay off very well. https://t.co/nqO4Jnwn3R
— Marty Bent (@MartyBent) August 24, 2020
After claiming that Snappa has been investing in bitcoin since early March, Gimmer explains that falling interest rates earlier this year and monetary policies during the pandemic influenced the decision. He goes on to justify the firm’s interest in bitcoin.
Gimmer dives right in with a history of money, citing Nick Szabo’s essay ‘Shelling Out’ when explaining fiat currency as a historical anomaly. He also name-checks Vijay Boyapati’s ‘The Bullish Case for Bitcoin’, as well as PlanB’s popular stock-to-flow model for valuing bitcoin.
The Snappa CEO carefully acknowledges the risks too. He mentions price volatility in the short-term, regulatory risks, and protocol-level threats.
Ultimately, he believes that bitcoin is a “far superior savings technology” to anything humans have known before. Snappa forms part of a growing number of companies who appear to believe this.
Herd of Bitcoin Bulls Growing?
Snappa is the latest company to admit to holding bitcoin reserves as a hedge against inflating fiat currencies. This month alone, BeInCrypto reported on two similar stories.
Nasdaq-listed Microstrategy recently admitted to taking a position of more 20,000 BTC. Michael J Saylor, the company’s CEO stated that Bitcoin is “an attractive store of value.” Like Gimmer, he too mentioned the current macro-economic climate as influencing the company’s purchase.
Less than a week later, Canadian restaurant chain Tahini’s converted its entire cash reserves to bitcoin. In a Twitter thread, the company reasoned that bitcoin is a “true free savings technology”, before also highlighting the risks of holding cash.
Earlier this year, legendary investor Paul Tudor Jones admitted that he had purchased a substantial amount of bitcoin. The famous hedge fund manager reportedly now has between one and two percent of his net worth in the leading digital currency.
Many have viewed bitcoin as nothing other than an asset for the criminal underworld. The latest acknowledgement by major companies and investors may be shifting the tides in sentiment. Will others follow suit?