It seems the corporate-Bitcoin FOMO bug is biting across the Atlantic. SynBiotic SE just became the first public listed company in Germany to allocate part of its free cash into the bellwether currency.
The reason cited by the firm for doing this is due to higher chances of further inflation and Euro devaluation.
Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar. Bitcoin is the exact antithesis of traditional currencies: its volume is limited to 21 million units. This limit is fixed and inviolable, which the cryotocurrency’s decentralized organization and the blockchain’s tamper-proof nature in turn guarantees. For this reason, we have more long-term confidence in bitcoin than in euros or dollars, where a central institution, influenced by politicians, can expand the money supply immeasurably. In addition, the cannabis sector in particular has had very positive experiences with bitcoin as a simple and digital means of payment. Several SynBiotic subsidiaries already accept payments in bitcoin in addition to payments in euros.
The pandemic has caused a huge easing of monetary policy leading to fiat currencies devaluation. As companies with huge cash reserve start to worry about the declining value of cash, allocating to Bitcoin seems to be the next logical step.
[ Read more: MicroStrategy To Buy More Bitcoin with Debt ]
