There are growing concerns for companies in the United States over rising inflation in the country. The authorities at the Federal Reserve continue to play down the severity of inflation and Producer Price Index issues, but companies are already looking to Bitcoin as a reasonable way out.
According to a report from FactSet, a market data firm, more than 45 companies cited inflation in their report for the first quarter of the year. This is probably what led to the 4.2% increase in the once-a-year PPI report from the Bureau of Labor in April, which is the highest recorded in the last 10 years.
US companies want to lower the cost of production or continue to raise prices for consumers. These businesses want to make sure their funds are safe from the looming dollar devaluation, especially after trillions of dollars entered the economy as Covid19 relief.
They are finding good examples in Microstrategy and Tesla’s recent punt with BItcoin. They have seen Michael Saylor’s MicroStrategy’s remarkable profit from investing in Bitcoin only a year ago.
They have also seen Tesla’s $101 million profit from 10% of its BTC holding after only two months of Bitcoin trading–so why not. The recent statement from the prestigious hedge fund company, Soros Fund Management, has not made things any easier for the government as well.
With the US Dollar inflation not anywhere near slowing down, it looks more like when US companies will switch to Bitcoin than if they will.