on the crypto
More and more traditional companies are entering the Bitcoin market day after day. However, they choose to keep them rather than convert them into fiat money. But why?
Here are who decided to keep bitcoins rather than convert them
Some of these companies include Tesla and Oakland Athletics Suite, a company that offers payment services. Both of these companies have started accepting Bitcoin payments from their consumers and have stated that they are not interested in converting the payments they receive into fiat currency. We don't know how long this will go on, but in the meantime both companies have practically declared themselves Hodler officers for the asset.
Why do traditional businesses refuse to sell their Bitcoins?
If companies choose to integrate Bitcoin for the sole purpose of meeting consumer demands, their risk factors are reduced. Due to the extreme volatility of digital currencies, momentary loss management can be achieved by quickly converting payments into stablecoins or fiat currency.
But when companies choose to overlook the potential risk they take, when they choose to hold their Bitcoins, it means they believe in the go-to cryptocurrency. This could be a result of the company's bosses or executives being Bitcoin holders themselves (true Elon?).
This is the case of Oakland A's Dave Kaval, who recently revealed that the baseball club is a strong supporter of bitcoin and is adopting the long-term asset. Therefore, he chose to keep it because he believes in a potential increase in the price of the asset in the future.
Although Tesla hasn't disclosed why he prefers to keep Bitcoin for the long term, previous tweets from Elon Musk already suggest that the CEO believes that adoption of the asset is inevitable, at least by his company.
Are commercial firms hedging themselves from inflation?
In the long run, having bitcoins in your wallet could be a great advantage for companies. A payout of $ 100, for example, during a rally could increase by 10%. However, similarly, in a bear market it could collapse by the same percentage or more. This could force smaller companies adopting Bitcoin as a payment to switch to stablecoins or altcoins with less volatility.
In this sense, stablecoins such as Tether USDT can be seen as a promising option. Altcoins with a lower price value can also be an attractive option for micro businesses.
Some companies may even begin opening their doors to both Bitcoin and other altcoins as an alternative, to weigh losses and gains before deciding which one to stick with.
Overall, hedging against inflation could be another key factor why companies are deciding to keep the asset. As the masses are always looking for different methods to conserve their wealth, it is no surprise that Bitcoin tops the list for institutions, investors and retail outlets.
