A large number of companies have converted cash reserves into bitcoin over the past few months. At the end of August, the Mediterranean restaurant chain Tahini’s announced that the Canadian company had converted all of its cash reserves into bitcoins. Tahini tweeted about the recent crypto reserve conversion on Friday, as the team recalled telling the firm’s financial advisor that gold as a precious metal and its years of being a reliable safe haven. are counted.
This year, a large number of private and publicly traded companies have collected large amounts of bitcoin (BTC) and stored the crypto asset as a form of reserve status. For example, the bitcointreasuries.org web portal shows 23 companies that hold bitcoin in reserve.
The nearly two dozen companies listed hold around 888,864 BTC worth over $ 15 billion, or 4.23% of the supply. In August, after Microstrategy announced its initial purchase, Canada-based Mediterranean restaurant establishment Tahini’s announced that it had converted all of its cash reserves into bitcoin (BTC).
“We just converted all of our cash reserves that were originally used as savings into bitcoin,” Tahini revealed at the time. The restaurant chain’s official Twitter account told the public on Friday why it decided to choose bitcoin over gold, a precious metal, as a safe haven.
“We looked our financial advisor in the eye and told him gold would become a scam because of bitcoin,” the company said. tweeted Friday. “He laughed and patronized the 6,000-year argument back,” Tahini added.
The restaurateurs decided to go further into why the company thinks “the years of gold are numbered”. Tahini’s concedes that gold has been a store of value for a very long time and that it is used in jewelry. Then the Twitter account noted that individuals in the gold sales industry like Peter Schiff “will lie to you and tell you that the value of gold comes from practical use cases like electronics,” said said Tahini.
“Gold is used for things other than a store of value, but this demand is not what gives gold a market cap of $ 10,000 billion,” said the Canadian restaurateurs. insisted.
Instead, Tahini’s believes the big countries and institutions that accumulate gold in coffers are what gave gold long-term value. For millennia it worked noted because “gold has always been the rarest asset with the highest stock-to-flow ratio”. However, Tahini pointed out that “Bitcoin changed that”.
Tahini’s opinion is that bitcoin is “1,000 times better than gold in every way” and gives 14 reasons why the company thinks the crypto asset is better. On the one hand, unlike gold, bitcoin is “a 100% monetary premium, which means it is not used for electronics or for any other use case other than silver. pure ”.
“Bitcoin dematerializes value and makes it digital, making it easier to transfer value across the world without the need for third parties,” the company said. wrote. “We can move $ 100 million from Canada to the UK in Australia and back to Canada in 2 hours for up to $ 30. To do this with gold you will need an armed security team and [it] will cost you from 300 to 500 thousand dollars [and] to take [four] To [five] months, ”Tahini added.
Conservators further said that due to the weight of the gold, some countries like Venezuela store their gold elsewhere and risk being confiscated. Tahini’s wrote that even ordinary citizens would go to great lengths to smuggle gold and illustrated their point by referring to a man who was recently caught storing gold bullion. gold in his rectum.
“Gold is scarce but bitcoin is absolutely scarce – A very important differentiation,” the company said. “Gold miners currently extract 2% of the gold supply each year. The higher the price of gold, the more resources will be spent trying to extract more gold, just like oil. Going forward, Tahini expects gold mining technology to improve, and on the other hand, bitcoin’s supply issue is fixed and has a tough adjustment.
The company concluded with a few other reasons why BTC was better than gold, and further noted that precious metal investors may “be easily surprised that a discovery of a new gold mine soon floods the Marlet”. In Tahini’s summary on gold versus bitcoin, the company also noted that he disagreed with investors like Dan Tapiero, Paul Tudor Jones and Stan Druckenmiller who “think gold and bitcoin are cousins”.
“Bitcoin’s supply is verifiable down to the last 1/100 millionth unit just by running a full node on your laptop,” Tahini said. determined in his Twitter feed. “While the gold bugs will tell you that gold is rare, there is no precise way to verify this scarcity down to the last ounce.”
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