Financial Executives Are Willing to Buy Bitcoin
Bitcoin and cryptocurrencies, in general, have the potential to revolutionize the world. Interestingly, Bitcoin’s incredible rally shows little sign of abating yet after the token surpassed $51,000 for the first time. People should keep in mind that the largest cryptocurrency rose almost 6% Wednesday to about $51,431 after a fivefold surge in 2020.
It is not surprising that people are willing to buy Bitcoin. According to Gartner’s survey, 5% of companies plan to invest in this cryptocurrency as a corporate asset this year. Moreover, a further 11% could invest in Bitcoin by 2024.
Interestingly, this survey came after news that Tesla invested 8% or $1.5 billion of its cash reserve, into Bitcoin. Furthermore, MicroStrategy Inc., the company that has also invested large sums into the token, made an important announcement. MicroStrategy Inc. announced a $600 million convertible bond offering with the intent of using the proceeds to acquire additional Bitcoins.
Bitcoin and interesting details
It is worth noting that the 77 participants, including 50 CFOs among other executives, showed highly differing views based on the crypto industry. Interestingly, the technology sector showed the most attraction toward Bitcoin. For example, 50% of respondents from this industry could one day buy cryptocurrency. Notably, there was no difference based on the organization’s size.
However, respondents also mentioned risk factors. For instance, 84% of respondents stated their main concerns regarding investing in Bitcoin revolve around the financial risk that comes from Bitcoin’s high volatility. Moreover, it also appears many are adopting a wait-and-see approach. It makes sense as they want to learn more about the situation.
Thanks to the survey conducted by Gartner, it is possible to gather information about cryptocurrency. For instance, more than 70% stated that one of the top things they want to know is what others are doing with Bitcoin. Moreover, almost the same number want to hear from regulators on the matter. Since they want to understand the inherent risks that come with the cryptocurrency.
Let’s have a look at other concerns as well. For example, other concerns expressed included board risk aversion (39%). As well as slow adoption as an accepted form of payment or exchange (38%), etc. As can be seen from the information stated above, financial executives would like to learn more about the largest cryptocurrency before making a decision. It is hard to blame them, as they do want to make risky decisions.
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