Many investors all over the world are looking at Bitcoin as a hedge against inflation. And, of course, in the light of the COVID-19 pandemic, battling inflation has become especially relevant for many, thus increasing Bitcoin’s popularity. Now, many members of the crypto community hold a significant part of their funds in BTC.
For instance, the Tahinis restaurant chain was the first to invest 100% of its cash reserves in Bitcoin, despite entering the crypto market only in August 2020.
Tahinis’ owners Aly and Omar Hamam devised a very successful plan, being 460% up on their initial investment as of this writing. Also notable that they bought BTC regardless of the market situation: “We even bought the [April 2021] top and then rode it all the way down, and we just kept buying month after month after month. So it has worked like a charm for us,” Aly said.
The brothers’ strategy is quite similar to MicroStrategy’s “Bitcoin-standard strategy”. MicroStrategy currently holds more than 100,000 BTC, constantly buying new coins to replenish its crypto wallet.
The company’s profit, however, isn’t immediately put into Bitcoin. Tahinis keeps working capital in cash, only buying Bitcoin after several months. Moreover, the company collaborates with other businesses to raise awareness of this practice. And even though Tahinis owners couldn’t disclose how much Bitcoin they hold on the balance sheet, they said sales at their restaurants have exceeded $8 (£5.6) million over the past year.
And, of course, inflation is to blame for this business decision. Since the beginning of the pandemic, Tahinis owners have been trying to hedge against rapidly rising costs of many ingredients needed to cook dishes in their restaurants. “Central banks will say inflation is only 5%. But that really depends on what you want to buy. Poultry is up 45%, beef is up 25%, imported goods and spices are up 65%, oils are up 110%,” they stated, making Bitcoin an ideal solution to this problem.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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