The Next Stage In Bitcoin: Small Business?

Microstrategy opened Pandora's Box. That one company made it fashionable for companies to use part of their reserve funds to buy Bitcoin. Obviously, being one of the early adopters of this trend, it works out very well for that company.

Tesla was also a major milestone since it really helped to bring the tech world into the equation. Before, we saw a lot of finance and FinTech companies. Tesla's $1.5 billion purchase, at present prices, is looking very strong. Rough calculation has them up over a billion dollars, in under 3 months.

Not a bad ROI.

However, is Bitcoin just a game for the large and well funded? The companies everyone is talking about are basically household names. Right now, everyone is watching to see who is next. Will it be Apple? Netflix? Amazon? A bank?

Nobody knows for sure.

What if there was another target market that this same concept could apply to? Instead of just dealing with the largest companies in the world, what about small businesses, at least the ones that are still around? Could they be served by what is taking place?

While the numbers will be much smaller, and will not get too much publicity, the total number of businesses could mean this adds up to a large amount of buying.


One small business that did make it into the news is a pizzeria in Alabama. Sam & Greg’s Pizzeria/Gelateria were motivated by Michael Saylor's endorsement of Bitcoin, that they were moved to shift $200K from their reserves into BTC.

According to the owner, here is what prompted the decision:

“So, why bitcoin for my business? The simple answer is that I have worked hard to save money, and I don’t like seeing it disrespected and devalued. I also do not appreciate politicians and central banks reducing the value of the American worker to the speed of a printer. Bitcoin solves these problems.

The simple forces of a fixed supply and unlimited demand are in play, making bitcoin the obvious choice as the go-to store of value for those simply needing a place to preserve capital, no matter what size business.

Source

The return since the purchase of Bitcoin started: 350%.

This could be considered a great way to stabilize a business.

So might this be the next wave of Bitcoin buyers? Everyone is looking for the big fish yet a lot of minnows can add up over time. If 100,000 small to medium-sized businesses do something similar as to what this pizzeria did, we could see another wave of buyers for Bitcoin.

We are seeing Bitcoin assuming the role as a foundation for many balance sheets. Of course, this is all exciting when the price goes up. Yet what happens when it goes down? As we know, Bitcoin can be extremely volatile. It is subject to large, prolonged pullbacks.

Certainly, this has the potential to affect the balance sheet negatively.

While this is true, the key is this is reserve funding. Thus, it is last resort money. Companies that are in jeopardy of not meeting the payroll next week probably should not be looking at this approach.

For those who still have solid revenues and profits, this could be a great way to divert some of the funds for greater returns. In the event of a pullback, there should be other reserves available to tap into. Nobody is saying allocate 100% of your balance sheet funds to Bitcoin.

This approach will allow one to weather the inevitable Bitcoin pullback storm. At the same time, the upside could be truly monumental. We see a great deal of upside potential meaning that the 350% return could just be the beginning.

Does this help to stabilize a company?

It certainly cannot hurt.

Cryptocurrency is offering the opportunity for life changing money. That is a phrase that is subjective in nature, varying based upon the individual. Nevertheless, for a small business to amass hundreds of thousands of dollars in a year from their reserve fund, that has to put their business, and the owner's balance sheet, on much firmer footing.

image.png
Source

Ironic that the first small business to make news about a Bitcoin purchase deals with pizza. There seems some quantum connection between Bitcoin and one of the most popular foods.

If you will recall, pizza was the first known product that was purchased with Bitcoin. An individual was able to buy 2 pizzas for 10,000 Bitcoin. Yes, hindsight is always 20/20. Today, you could probably buy a number of Papa Johns franchises for that money.

Whatever the connection, there is one family who owns a pizzeria who is very happy to be involved in Bitcoin.

Which brings up the question of whether people can buy their pizzas using Bitcoin?

We might just have to wait some time on that one.


If you found this article informative, please give an upvote and rehive.

gif by @doze

screen_vision2025_1.png

logo by @st8z

Posted Using LeoFinance Beta



0
0
0.000
28 comments
avatar

pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 48 of my contest just started...you can now check the winners of the previous week!
!BEER
3

0
0
0.000
avatar

Oh wow amazing and yes I know a few businesses in Australia that have not only invested in bitcoin but are using it as a means of payment. I wonder if I still have the images.

It will make a great post.

You provide some great content to the platform brother. Keep up the great work.

I'd welcome your visit to Australia in the coming months once restrictions are over. We can burn through some of our Leo finance earnings on the community. Heaps of things you'll like out here.

I went to the Melton Gold Cup speed boat races yesterday. 240km boats, small river. Lots of thrills. I'll upload a video shortly I've posted about it. But need the sound of those engines!

Posted Using LeoFinance Beta

0
0
0.000
avatar

I went to the speed boat races in Key West one time. Great fun.

We need a Leofinance racing boat. That would be cool. Need the price a lot higher than it is now though. That is not a cheap sport. Those boats cost a fortune.

Thanks for the invite. Yes we need the damn restrictions lifted to spend our Leo earnings. In the meantime, we can keep stacking.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Yeah they're pricey. I spoke to one young bloke. $AUD45,000 Just for a basic engine no boat.

One of the top speeders at the event was valued at $AUD300,000 without including what was spent building it.

Hahaha corporate Leo events, sounds like fun. It would Definitely give Leo the added edge in the market. Visibility is part of the battle.

Posted Using LeoFinance Beta

0
0
0.000
avatar

That story shows bitcoin
is here for whoever want a piece of it.
Yeah that pizza story for 10k btc is something.

Posted Using LeoFinance Beta

0
0
0.000
avatar

The pizza stories continue. On a side note, I think BTC will do fine since we have plenty of buyers of last resort. As there is a limited supply, I can only see it going up as these people HODL their BTC due to scarcity. I think businesses like know this and they count on this as a good store of value. So it is highly like to at least maintain its price or go higher. Therefore the risk/reward is sound and thus this investment isn't so bad.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Certainly has to have the lowest risk of any crypto, by far. The upside might not be that of some but it is more of a certainty. So I think you hit it on the head, there are a lot f buyers at a certain level.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Congratulations @taskmaster4450le! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You distributed more than 25000 upvotes.
Your next target is to reach 26000 upvotes.
You have been a buzzy bee and published a post every day of the week
You received more than 14000 HP as payout for your posts and comments.
Your next payout target is 15000 HP.
The unit is Hive Power equivalent because your rewards can be split into HP and HBD

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

0
0
0.000
avatar

I like this types of news because such people are going to be incentibvized at some point to accept crypto as payments to and that's how the control of governments and central banks becomes weaker.

Posted Using LeoFinance Beta

0
0
0.000
avatar

That is true. Even if it isn't BTC, there are other cryptos they might start to accept that have better fee structures (HIVE?).

Either way, the more success stories the better it is for all of this.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Indeed. How I'd wish at least the gas station in here would accept HIVE 😁

Posted Using LeoFinance Beta

0
0
0.000
avatar

All in due time. Hive is just really getting started. We are closing in on one year of being on our own. A lot took place in the first year, much of it cleaning up what should have been done long ago.

Now we are in a much better position to push forward. The starting point compared to 12 months ago is much higher.

I think the second year of Hive will be light years ahead of the first.

It is going to be awesome to watch (and be a part of).

Posted Using LeoFinance Beta

0
0
0.000
avatar

What happens when you need that reserve fund in a bear market and your investment is down 300% instead of up 300%? that could put a small business under

Posted Using LeoFinance Beta

0
0
0.000
avatar

Depends upon how much of the reserve fund is in Bitcoin.

I dont think anyone is suggesting that a small business put all of its reserves in Bitcoin, just a small percentage.

Posted Using LeoFinance Beta

0
0
0.000
avatar

This is really cool. Unfortunately right now due to the Covid thing a lot of small business don't have the money to invest into something like this. I wonder who many businesses are using their loans from the government and putting them into crypto. That actually might have been a really smart idea for them. I am guessing the government would probably frown on that a bit! :)

Posted Using LeoFinance Beta

0
0
0.000
avatar

Ya 350% is just a great return
I think all will try to take its get its share of the cake and this will greatly affect the bitcoin price
The more buy, the higher the price
Now I am not worried about the correction

Posted Using LeoFinance Beta

0
0
0.000
avatar

As a small business, I would buy in for avg price over a long time period and not FOMO in at the current ATH :D Because someone says something.

I think someone should say something about Hive :) But Bitcoin is also on a level today, everyone can buy easily. Some day we see this also on Hive :)

A Bazillion apps allow to buy hive.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Someone watched Crypto Zombie this morning? ... 😃

0
0
0.000
avatar

I do believe many businesses have been forced to go this route as they also need to secure their futures. This pizza place making 350% which is $70 000 is a small fortune and how many pizzas would that equal if he had the money just sitting in the bank. At $10 that is 7000 pizzas.

Posted Using LeoFinance Beta

0
0
0.000