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Hi Everyone,
It's been nearly two years since NFL superstar Russell Okung made a concise demand from his team before the entire world.
This tweet arguably marked the end of a very long crypto winter. It wasn't until the very end of last year though that he finally got his wish. |
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It was certainly a turning point for crypto. Even though there were many before him, Okung's very public and high-profile struggle emphasized just how advantageous it can be to receive one's salary using digital assets, and how important it is for their adoption.
Today, the business intelligence company MicroStrategy made fresh headlines by announcing that... |
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At first, this headline surprised me somewhat. Though we know that MicroStrategy's CEO, Michael Saylor, is a huge advocate of bitcoin, it's hard to imagine him parting, even partially, with his company's stack.
The final line of the article does explain though, that Saylor's accumulation strategy is not in question whatsoever, as the fees paid will be converted from dollars into the digital currency for the purpose of these payments. |
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The barriers
Whether a company wants to convert from fiat or pay their employees directly out of their bitcoin holdings, it's no simple operation.
Companies looking to boost adoption in this fashion face countless hurdles, not least of which is implementing the procedures themselves.
Whether they want to hold the keys in-house or set it up through a payment processor who does it for them, these things are always fraught with complications.
However, the tax implications are by far the biggest barrier to corporate adoption.
Even before bitcoin was invented, the late great libertarian economist Milton Friedman hypothesized about a peer-to-peer internet cash and spoke to the benefits of people using such a currency to avoid taxes.
Nevertheless, most legitimate businesses do want to ensure that they avoid trouble with the law by keeping a clean book and paying the proper taxes.
I can say from experience that paying one's team members in bitcoin can be particularly difficult. Sending bitcoin is so much easier and cheaper than traditional methods, but reporting on such is not only logistically cumbersome, it's expensive.
Fortunately, some industry participants have been making great headway toward addressing this matter. |
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Super whale
Meanwhile, the crypto market is preparing for a whole new level of institutional adoption as the largest crypto exchange in the United States goes public.
With an expected valuation of $100 billion, Coinbase will actually be worth about four times more than the Nasdaq exchange on which it will be listed, which should give you a good idea of just how investors feel right now about bitcoin and crypto in general.
Like Tesla, GameStop, and many more benefactors of this crazy era in which traditional evaluation methods have gone out the window, this particular stock is unique in that it will be starting out with this value, rather than allowing the market to determine what price it should trade at.
As a result, it will be very interesting to watch the first few days of price discovery.
Some people feel that this event will actually serve to pump the price of bitcoin, though personally I'm not so sure. In my humble opinion, it's just one of the many factors contributing to a very bullish market right now.
Let's have an amazing day. |
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Mati Greenspan Analysis, Advisory, Money Management |
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