A Middle Eastern restaurant chain based in Canada just converted their complete fiat cash reserves into Bitcoin. According to a tweet made by ‘Tahini’ on August 19th, their decision to convert their cash reserves into cryptocurrency had its genesis in the crash that happened in March and when assistance programs were provided by the Canadian government to businesses that we’re unable to keep their operations running because of the pandemic. With Canada and the United States deciding to print money to help their struggling economies, Omar Hamam, the owner of Tahini, which claims to be the ‘best Middle Eastern restaurant in the world’, began to regard the financial system as a game of musical chairs.
This meant that when the music stopped, some people would be left out. Hamam stated that he thought the printing of money and the handouts would devalue fiat currency. He said that it became apparent that cash just didn’t have the same appeal and it would eventually become worthless with so much excess cash floating around. Hamam said that he was trying to expand his knowledge about finance constantly and had heard in the Bitcoin community that you should hear about Bitcoin a minimum of 7 times before getting into it.
He chose to convert his company’s savings into Bitcoin because he believes it is a much better option to save rather than going for cash. He also added that they would continue using Bitcoin as a reserve asset, as long as they didn’t require any fiat currency. The financial planning strategy that has been adopted by Tahini was also followed by MicroStrategy, a listed business intelligence company. Last week, this company had announced that they were going to adopt Bitcoin as their primary reserve asset. MicroStrategy used roughly $250 million for purchasing around 21,454 BTC.
With the landscape changing so quickly these days, people are wondering if even Berkshire Hathaway, which is under the control of Warren Buffet, may decide to invest in crypto as a hedge against inflation. This week the company made an investment in a gold miner for the first time. The crypto community has shown enthusiastic support for the decision of the restaurant to make the switch to Bitcoin. Anthony ‘Pomp’ Pompliano, the podcaster, tweeted his support for the move by saying that yet another company had converted their balance sheet capital into Bitcoin. He also said that this idea was catching fire.
The host of the podcast What Bitcoin Did, Peter McCormack, also echoed the same thoughts and said that he was also thinking of converting his entire working capital into Bitcoin. In the last couple of weeks, Bitcoin’s price has rallied and there is increased interest in the cryptocurrency as it is expected to increase even more. Even though the U.S. Dollar is strengthening once again, there is still a long way to go before it becomes stable. With Bitcoin available having a market cap of 21 million, there is a good chance it will continue to gain in value, making it a good investment.
