Money is changing, and Bitcoin is at the center of this change. People used to think of Bitcoin as speculative, but now, big companies keep it in their bank accounts. Eliot Chun, a partner at Architect Partners, says that by 2030 almost 25% of S&P 500 companies will have Bitcoin on their bank sheets. They are under more and more pressure to use Bitcoin or risk falling behind as the world moves towards digital currencies. With Tesla, Block, and MicroStrategy leading the way, the time when Bitcoin drives business finance is getting closer than ever.
Corporate FOMO
Now, Treasury managers must make a big choice: should they invest in Bitcoin or miss out on possible gains? Chun raises a growing worry: leaders who don’t try Bitcoin at least once could risk losing their jobs. This makes sense:
- They are leaders if they put money into Bitcoin, which does well.
- They still tried, even if it didn’t work.
- But they might lose their job if they don’t do anything about it.
The biggest company that owns Bitcoin is MicroStrategy (MSTR). Its stock has risen over 2,000% after investing in Bitcoin in August 2020. This is a considerable increase compared to Bitcoin’s 781.1% gain and the S&P 500’s 64.8% growth.
Bitcoin’s Future
Although very volatile, Bitcoin is becoming increasingly popular to protect against inflation and spread your investments. Others, like MicroStrategy, have gone all-in on Bitcoin and made it a core part of their business plan. Still, others use Bitcoin to manage risk. Chun worries, though, that businesses that hope to repeat MSTR’s huge success might be let down. The important thing is to balance Bitcoin exposure with standard assets instead of changing how companies work to fit Bitcoin.
Conclusion
The race to use Bitcoin is speeding up, and business treasuries can’t longer afford to stay out of it. Bitcoin is about to become a common form of money because more companies are likely to join. No longer is it a question of whether Bitcoin will take over business treasuries, but when and how companies will use it in their financial plans.
