A Canadian restaurant chain announced that they have converted all their cash reserves into Bitcoin
I'm not sure whether this is a great move or a sign of near term market top...
Via an announcement on Twitter, the Canadian based Middle-eastern restaurant chain Tahini's announced the other day that they were following in the footsteps of MircoStrategy and converted all their cash holdings into bitcoin.
The announcement:
(Source:
)https://twitter.com/TheRealTahinis/status/1295770434349281281
- TheRealTahinis
More on the specifics can be seen in the link above.
This is awesome news and scary news at the same time...
If you end up clicking the link and reading a little about their decision, you will quickly learn that the owners of this restaurant chain are not what you would call "finance savvy people".
That's not a knock on them, it's just a fact.
They are jumping on the hype train and in a way betting their business on that hype train.
If everything we think is going to happen actually does happen, the move is going to pay off big time for this restaurant chain and make these guys look like geniuses.
However, it also may not.
And often times when you see people that know nothing about crypto or finance in general start putting big sums of money into things they don't fully understand, well historically that has rarely worked very well for them.
Luckily for them another company that does understand bitcoin and finance very well made the same move several days prior.
MicroStrategy announced putting $250 million of their cash reserves into bitcoin several days back, more on that can be seen here:
This time it will be different...
Famous last words right?
Normally when you see retail folks start leveraging their life savings into speculative investments, it usually means a market top is right around the corner and rarely turns out well for those retail investors.
That being said I think this time will end up being different.
However, the only way it will be different is if these retail business are ready to hold through the ups and downs.
Most of the time when they get into something like this and then it suddenly drops 20% or so, they get cold feet and lock in the loss.
In this instance I think that could be a possibility here if they are not prepared to HODL.
Bitcoin is up over 3x from the lows in March and is having a tough time cracking $12k in the very near term, there is a possibility that a dip down to around $10k is in the cards, especially if the stock market experiences some weakness like some are calling for as well.
I don't personally think it will happen, but it may, you never really know.
If they can stomach dips like that and hold on, the move to bitcoin will make them look like foxes several months from now.
Bitcoin and crypto investing is not for the faint of heart and you better be prepared to stomach some uncomfortable moves if you get involved.
Stay informed my friends.
-Doc