Institutional store of value – what benefit can organisations get from spending some of their cash reserves on Bitcoin or digital assets?
I was really excited to talk to @andrarchy Andrew Levine (CEO of The Koinos Group) about the idea of companies and organisations potentially parking a percentage of their cash reserves into digital assets.
Here is the conversation on my Cinnamon.video channel:
Or embedded from Cinnamon:
Or if you want to watch the YouTube embedded version:
So many options!
We were both pleasantly surprised when Tesla spent over 7% of their cash reserves on Bitcoin. I personally think it was a smart move. They’ve actually already made over half a billion with the price rise that they caused, and there are tax benefits to them if the price goes down with the volatility.
As more companies look to spend a portion of their cash reserves on Bitcoin the price will stabilize and the potential to benefit on that volatility will decrease… but considering that the real inflation on the USD is anywhere from 3% to 20%, it might not be as risky a move as it first seems.
Future institutional store of value
With this first move by a small of companies to buy up Bitcoin, the obvious next question is…. are there better digital assets organisations could expose themselves to? Will assets in the future provide some kind of yield for the stake companies provide? Definitely an interesting thought process to go down, both as a company and as a retail investor looking to beat them in.
Previous blockchain content
If you’re interested in previous chats with Andrew about Koinos, check out these posts:
Tokenomics of Blockchains
Enterprises and Public Blockchains
Feeless Blockchain Transactions – How does it work?
Token distribution – Mining KOIN and Proof of Work
Integrating with Koinos
Smart Contracts – what are they?
A conversation with Andrew from the KOINOS Group
Here are all the good bits:
Koinos Network Socials
Koinos Group Socials
If you have any questions please feel free to either comment on this post or reply to this tweet:
Thanks so much for watching!
Please note : The above post may contain affiliate links.
Below are some product referral links that I love and will benefit us both if you’re interested.
Splinterlands – A super fun blockchain card game that I play almost every day.
Coil – A $5 USD monthly subscription fee provides you access to a ton of content and sites in a way that fairly rewards the creators of that content.
Exxp – The WordPress App to link your blog to the Hive blockchain.
NomadTask – Earn for completing online tasks like following accounts or completing reviews.
MINT Club – Create your own Smart Media Tokens with no coding required.
GALA Games – Gala is creating a whole platform of blockchain games. Definitely excited about Mirandus, Townstar and SpiderTanks.