Canadian restaurant chain Tahini’s announced in a tweet that it would convert all its cash into bitcoin. It is a family business with 4 restaurants, which intend to expand with the franchise method in 3 more locations in Ontario. It is not listed on a stock exchange like MicroStrategy, which converted $250 million into bitcoin.
More interesting than the size is their reasoning, as they recounted how they experienced the pandemic crisis and its effects. Specifically, they mentioned that at first they had a customer problem because people were afraid to go out to dinner. Afterwards, much of their employees left, forcing themselves to work day and night to keep restaurants open.
The pandemic found them at a difficult juncture as they were in the process of expanding. However, as they describe, they were able to cope and maintain positive cash flow in all restaurants. But they soon found themselves faced with another big problem. Government programs make it difficult to find staff because employees earn more money staying at home!
Suddenly Canada went through an economic crisis, at a time when everyone found themselves with a lot of money. They found themselves (Tahini’s Owners) with a lot of cash due to state aid and not because their business became profitable again.
This not only pleased them, but also troubled them. It was obvious that the cash did not have the same value as before. All this excess cash circulating in the economy, sooner or later, will lose its purchasing power. That’s why they turned to bitcoin, even though at first they were negatively predisposed, listening to Buffett describe it as toxic.
Knowledge Will Set You Free
Starting a journey of knowledge, they are now convinced that this (bitcoin)is a reliable means of compensating against possible inflation. All we have to add about the case of Canadian entrepreneurs is that the assessment we made two weeks ago is fully confirmed:
“MicroStrategy is not going to be the only company to take such an action. It is certain that more will follow after that. They may not put what they have in their fund, but they’ll start with a small portion of their reserves. The trend may take a while to strengthen, but it will follow the natural evolution”.
The same thing happened with private individuals. They started tentatively by converting a small part of their capital to Bitcoin or other Cryptos. They then found that the prevailing ”bubble” or ”fraud” or ”air pollution” was nowhere to be found. They’ve done more, they’ve studied, they’ve invested more money. Now there are quite a few who most of their portfolio is in bitcoin.”
One thing’s for sure. There have been many cases of people who, while they were negatively predisposed to bitcoin, when they started to be informed about it and study it, changed their minds.