Software Firm Snappa Swaps 40 percent Cash Reserves for Bitcoin

Software Firm Snappa Swaps 40 percent Cash Reserves for Bitcoin

Knowledgebase News
09/10/2020 by Koinal
Snappa is a Canadian software company based in Ottawa. Snappa recently announced its decision to convert a substantial part of its cash reserves to Bitcoin. The Snappa Bitcoin conversion follows several other Canadian firms that have converted significant amounts of their cash reserves to cryptocurrency. At Koinal, we follow trends in cryptocurrency and promote public information about market trends. We offer an efficient method of purchasing Bitcoin and other currencies using bank debit cards and bank credit cards.
Software Firm Snappa Swaps 40 percent Cash Reserves for Bitcoin

The Snappa announcement came on August 24, 2020; the company converted 40 per cent of its cash reserves to Bitcoin(BTC). The Snappa move to Bitcoin followed similar announcements by Microstrategy and Tahini’s restaurant chain. The trend among Canadian firms is based on observations of the national economy, and it also reflects a view of global economic conditions. The reasoning and strategy underlying these moves may apply to businesses and investors around the world.

Reasons for the Snappa Move:

Snappa acted to protect its cash assets against a perception that fiat currency or cash would not yield more excellent value than Bitcoin. According to Snappa’s analysis, cash holdings were subject to national monetary policy. Quantitative easing in Canada supports national economic goals, and it involves managing debt and creating additional supplies of cash. Quantitative easing has reduced the levels of interest paid by banks and thrift institutions. Snappa reported that its latest investment interest rate was 0.45 per cent.

Bitcoin is not subject to the impacts of economic policy. Unlike a national currency, no central bank can continuously increase the supply and possibly reduce its value. The below-listed items describe the financial foundation for the conversion of cash reserves to Bitcoin. 

  • Bitcoin has a limited volume
  • Government monetary policies will not dilute Bitcoin
  • Bitcoin has a transparent supply to flow 
  • Bitcoin May be More Predictable

According to Snappa’s analysis, Bitcoin has advantages in today’s economy over cash for holding reserves. The money supply can expand to carry-out national economic policies. When the money supply grows, the value of money can fall. Moving to Bitcoin is a hedge against volatility in the amount of cash in economies that apply monetary policies like quantitative easing.

At Koinal, we help investors and companies purchase Bitcoin and other cryptocurrencies. Whether you are new to cryptocurrency or an experienced trader, our simple, safe, and secure procurement portal can help you reach your goals.

1 1 vote
Article Rating
Notify of
Inline Feedbacks
View all comments