Fun

Corporate Crypto Reserve Status: Software Firm Snappa Swaps 40% Cash Reserves for Bitcoin

News Feed - 2020-08-25 07:08:10

Corporate Crypto Reserve Status: Software Firm Snappa Swaps 40% Cash Reserves for Bitcoin


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 Tahini’s 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 company’s 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 “40% of our cash reserves” into the crypto asset. In the blog post titled “Why We’re Holding Bitcoin as a Reserve Asset,” Gimmer explains why the firm made its decision.


“Would 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?” Gimmer asked in the announcement’s opening statements.


The company realized that this was an important consideration when the firm’s bank “slashed the interest rate on our ‘high interest’ savings account to 0.45% earlier this year.”


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 company’s reserves. Much of the reasoning was due to global economic uncertainty, the devaluation of fiat, and Bitcoin’s digital scarcity.


Gimmer also mentioned the controversial stock-to-flow (S2F) theory in the announcement and believes that because Bitcoin is transparent, “we can actually measure Bitcoin’s S2F with 100% certainty at any point in the past and at any point in the future.”


Gimmer said that “many people” believe that quantitative easing (QE) and the government’s manipulation of debt will lead to “asset price inflation and a widening wealth gap.” The cofounder of Snappa thinks this trend of money creation and the devaluing of fiat currencies will continue.


Gimmer’s blog post also discussed the billion-dollar firm Microstrategy’s 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.


“After pouring over the research myself, I believe that massive amounts of quantitative easing combined with fiscal stimulus will continue to result in currency debasement,” Gimmer concluded. “In addition, I expect governments to keep doing more of the same in attempts to fight the natural deflationary pressures of technology.”


The Snappa cofounder added:In order to hedge this risk, we’ve 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.IMF Publishes Cryptocurrency Explainer, Saying It "Could Be the Next Step in the Evolution of Money"NEWS | 8 hours ago$50 Billion in Cryptocurrency Left China Amid Escalating Trade WarsNEWS | 13 hours agoTags in this storyBitcoin, bitcoin reserves, BTC, Canada, cash reserves, Christopher Gimmer, Digital Scarcity, Microstrategy Inc, Ottawa, quantitative easing (QE), Snappa, Snappa Bitcoin, stock-to-flow, Tahini"s, tahini"s bitcoin


Image Credits: Shutterstock, Pixabay, Wiki CommonsUse Bitcoin and Bitcoin Cash to play online casino games here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

Paradigm leads $20M funding round for Ellipsis Labs’ DeFi expansion
Amaka Nwaokocha1 hour agoParadigm leads $20M funding round for Ellipsis Labs’ DeFi expansionEllipsis Labs will use the new funding to accelerate the progress of DeFi up and down the stack.175 Total views1 Total sharesL
Binance to Help South Korean City of Busan Grow Crypto Adoption, Develop Blockchain Ecosystem
Binance to Help South Korean City of Busan Grow Crypto Adoption, Develop Blockchain Ecosystem Binance is helping the South Korean city of Busan “grow crypto adoption within
Galaxy Digital Reveals Bold Dogecoin Price Prediction For 2025
Este artículo también está disponible en español. Every year-end, some of the top crypto analysts and crypto firms reflect on the industry’s performance, and look forwa
Ether (ETH) price drops after Dencun upgrade, as Ethereum layer-2s experience lower transaction costs
Nancy Lubale5 hours agoEther (ETH) price drops after Dencun upgrade, as Ethereum layer-2s experience lower transaction costsHistorically, Ethereum network upgrades rarely significantly impact the price of ETH.3953 Total
Alek Hidell10 hours agoRedefining Money: America’s digital currency dilemmaAs the United States House Financial Services Committee looks to further impede the introduction of a digital dollar, where does this resistanc
Bitcoin Expert Samson Mow Reveals Why BTC Is Not Trading At $10 Million Per Coin Already
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Jesse Coghlan6 hours agoBNB Smart Chain hit with copycat Vyper attack, $73K exploitedWhile Ethereum-based protocols have been hit with the majority of the exploit activity, BNB Smart Chain has also seen similar copycat e
Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon
Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon sponsored The Play-to-Earn NFT based Polker.Game‘s native token $PKR has been officially listed on t
Crypto Hardware Wallet Maker Ledger Raises $100M Amid Growing Demand for Secure Storage Solutions 
Crypto Hardware Wallet Maker Ledger Raises $100M Amid Growing Demand for Secure Storage Solutions  The cryptocurrency hardware wallet manufacturer Ledger has raised €100 million
5 New Presales Set to Explode in February as Michael Saylor Breaks Forbes in Two
MicroStrategy’s CEO, Michael Saylor, has made it to the cover of Forbes, with the magazine giving him the title “The Bitcoin Alchemist.” The title’s fitting, to say the least.
Chinese Banks Seek New Applications for Digital Yuan in Investment and Insurance
Chinese Banks Seek New Applications for Digital Yuan in Investment and Insurance Two Chinese banks are expanding their pilot programs for the digital national fiat. The state-owned
The ‘Feels Guy’ Gets Blockchained — Rare Wojak NFT Project to Launch 4,000 Randomly Generated Wojaks
The "Feels Guy" Gets Blockchained — Rare Wojak NFT Project to Launch 4,000 Randomly Generated Wojaks While Pepe the frog and Doge made it into the limelight with unique and rare