German Cannabis Firm Decides to Invest in Bitcoin | Finance Magnates - The first knowledge sharing application in Vietnam

SynBiotic SE, a cannabis company listed on the Düsseldorf Stock Exchange, announced its decision to invest in Bitcoin on Tuesday, becoming the first German public company to do so.

The company justified that its decision was backed by the excessive increase in money supply in both the euro and USD zones, which raised the concerns of a massive devaluation of fiats.

“Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar,” SynBiotic SE CEO, Lars Müller explained. “Bitcoin is the exact antithesis of traditional currencies: its volume is limited to 21 million units. This limit is fixed and inviolable, which the cryptocurrency‘s decentralized organization and the Blockchain
Blockchain

Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe

“For this reason, we have more long-term confidence in bitcoin than in euros or dollars, where a central institution, influenced by politicians, can expand the money supply immeasurably.”

However, the company did not reveal an absolute amount or the percentage of the cash reserve it is going to invest in Bitcoin.

The trend of adding Bitcoin to the balance sheet was originated by MicroStrategy, a business analytics company, which is still purchasing a massive amount of Bitcoin. Finance Magnates recently reported on its intentions to receive $600 million in loan for Bitcoin purchases.

Although, the most notable investment was Tesla’s, which pumped the prices of the original digital currency after its $1.5 billion investment. Now, many other companies are considering getting exposure to Bitcoin: a survey found out 5 percent of CFOs are in favor of Bitcoin investments.

Mục lục bài viết

Mixing Cannabis and Crypto

SynBiotic is involved in buying and building strategies in the cannabis industry, which already saw massive hype in the past few years. Now, crypto exposure can boost these company stocks even higher.

The impact of the announcement can be already seen in the market as the SynBiotic stocks gained over 4.6 percent in the ongoing trading session.

“The cannabis sector, in particular, has had very positive experiences with bitcoin as a simple and digital means of payment. Several SynBiotic subsidiaries already accept Payments
Payments

One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl