Snappa Software now holds reserve finances in Bitcoin
The graphics software company joins MicroStrategy and Tahini’s in exchanging cash reserves for Bitcoin holdings
Snappa, a graphics software firm based in Ottawa, Canada, has announced that it will be moving a large portion of its cash reserve into Bitcoin.
It is one of a handful of companies that have already started the transfer, alongside Tahini’s from Ontario and MicroStrategy, the billion-dollar financial services firm.
Chris Gimmer, the co-founder of Snappa, explained the reasoning behind the company’s newfound philosophy on his personal website.
The blog post, entitled Why We’re Holding Bitcoin As A Reserve Asset, delves into the capacity for cash assets to save money if the value of the supply is inflating on a yearly basis.
“It became even more important when our bank slashed the interest rate on our “high interest” savings accounts to 0.45% earlier this year. This means that the purchasing power of our Canadian and US dollars is actually decreasing after adjusting for inflation,” the blog read.
Gimmer reveals that the company had started slowly accumulating Bitcoin since March of this year and explains his stance behind the importance of Bitcoin.
He provides a comprehensive explanation of the history and evolution of money, from using collectibles as a medium exchange in ancient times to the shift in pegging it to silver and gold.
“What some groups found out the hard way is that scarcity is one of the most important factors when it comes to money. If the supply of your money can be inflated away, your purchasing power will plummet as a result,” he continued — demonstrating how using collectibles as a system of currency could easily be hijacked by other entities, which could replicate the currency at a cheaper price.
Gimmer then went on to explain that Bitcoin helps achieve, amongst other things, the primary goal of digital scarcity. Since there will only ever be 21 million bitcoins in the world, the supply of the cryptocurrency would only be getting more scarce over time — a contrast from other fiat currencies, which are getting less scarce.
“If we’re talking about a reserve asset whose main goal is to maintain purchasing power, it stands to reason that the most scarce asset would win out over time,” Gimmer concluded.
He then provided a quick recap of an article published by fellow crypto enthusiast Vijay Boyapati, entitled The Bullish Case For Bitcoin, to illustrate the difference between Bitcoin and gold as a store of value in terms of durability, portability, fungibility, verifiability, divisibility, and established history.