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Middle Eastern Restaurant Chain Converts Entire Reserves to BTC

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A Canada-based Middle Eastern restaurant chain just converted their entire fiat cash reserves into Bitcoin.

According to an Aug. 19 tweet from Tahini’s — ‘the best Middle Eastern restaurant in the world’ — the decision to switch its cash reserves to crypto had its genesis in March’s crash, and when the Canadian government began to provide assistance programs for businesses unable to stay open due to the pandemic.

With the United States and Canada printing money to prop up their ailing economies, Tahini’s owner Omar Hamam started to see the financial system as “a game of musical chairs being played right now and the music will stop and some people will get left out.”

Hamam said he was concerned that the handouts and money printing would devalue fiat currency. “It was apparent to us that cash didn’t have the same appeal,” he said. “That eventually with all the excess cash circulating the economy that cash would be worth less.”

“As time went on I was constantly trying to learn and grow my knowledge about finance. I heard people in the Bitcoin community saying you have to hear about Bitcoin at least 7 times before you get into it. 100% accurate.”

He decided to convert the company’s savings into Bitcoin because it “offers a much better alternative to saving cash.” He reported that they would continue to use Bitcoin as a reserve asset — “maybe forever, if we don’t have a need for fiat.”

Bitcoin accepted here

Tahini’s is following the same financial planning strategy as listed business intelligence company MicroStrategy, which last week announced it had adopted Bitcoin (BTC) as its primary reserve asset. MicroStrategy purchased 21,454 BTC for roughly $250 million.

The landscape is changing so fast, some now wonder if even Berkshire Hathaway, controlled by Warren Buffett, may invest in cryptocurrency as a hedge against inflation. The company invested in a gold miner for the first time this week.

The restaurant’s decision to switch to Bitcoin received enthusiastic support from the crypto community. Podcaster Anthony ‘Pomp’ Pompliano tweeted his support, saying “another company converts their balance sheet capital to Bitcoin” adding he thought the idea was catching fire. Peter McCormack, host of the What Bitcoin Did podcast, echoed Pomp’s thoughts and tweeted he is also considering converting all his non-working capital into BTC.





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3 reasons why Bitcoin price has not been able to rally back above $40K

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The ongoing story for the past couple of months in the cryptocurrency market has been confusion on whether Bitcoin (BTC) is destined for another leg down or is finally ready to break out toward new highs.

Bitcoin’s price history and data from previous corrections suggest that the current struggles for the top cryptocurrency could persist for a little bit longer due to the strengthening dollar, the possibility of decreasing economic stimulus and a slew of technical factors connected to Bitcoin’s price action.

A strong dollar threatens Bitcoin’s recovery

According to data from Delphi Digital, one of the biggest factors placing strain on risk assets around the globe is the strengthening U.S. dollar which appears to be attempting a trend reversal after falling below 90 in late May.

DXY 1-day chart. Source: TradingView

Rising dollar strength put a halt to the year-long uptrend in the 10-year US Treasury yield which is also a reflection that the economic expansions seen in the first half of 2021 are beginning to lose steam and there is a threat that a new wave of Covid-19 infections threatening the global economic recovery.

Fractals and the Death Cross suggest the correction is not over yet

The short-term outlook for Bitcoin remains bearish as previous instances of the “Death Cross,” which appeared on BTC’s chart in late June, have been followed by a corrective period that can last for nearly a year.

Bearish crossover of the 50 day and 200-day MA. Source: Delphi Digital

According to the analysts at Delphi Digital, the 12-month moving average is being tested as support, and a dip below this level would signal further downside for BTC price.

Bitcoin price testing the12-month moving average. Source: Delphi Digital

The 12-month moving average has been a key support level for Bitcoin historically, so how the price performs near this level could dictate whether the current uptrend remains intact.

Related: El Salvadorians take to the streets to protest Bitcoin law

Overall, caution is warranted for traders because low volumes have historically led to higher volatility when fewer open bids can lead to rapid price fluctuations.

As explained by Kevin Kelly, a certified financial analyst at Delphi Digital, “the short-term outlook turns quite a bit more bearish if and when we break those key levels” near $30,000.

Kelly said:

“I don’t necessarily think that we will see as nearly as significant of a drawdown as we did in say, post-December 2017, early 2018, and into the end of that year. But I do think, just given the structure of the market, that we could potentially be in for a bit more short-term volatility and potentially some more headwinds here, in the near term.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.