A Restaurant convert entire savings to Bitcoin

[thesmallgod]

According to the tweet https://twitter.com/TheRealTahinis/status/1295770434349281281. Tahinis, A Canada-based Middle Eastern restaurant has converted all their entire savings to bitcoin.

The decision to turn the cash holdings to cryptocurrencies emerged in the March crash and as the Canadian government started to offer aid services to companies struggling to stay open owing to the pandemic.

With the U.S. and Canada printing money to support their crippled economies, Tahini's owner Omar Hamam began to see the financial system as "a play of tic tac toe being played right now, and music will halt and some people would be left out."

Hamam said he was worried that handouts and money printing would devalue the economy of the fiat. "It was clear to us that cash did not have the same appeal," he added. "In the end, with all the extra currency floating in the market, the capital will be worthless."

He decided to convert the business's savings to Bitcoin as it "gives a much viable choice to saving cash." He said they would proceed to use Bitcoin as a reserve asset — "perhaps permanently if we don't need fiat."

[1714779055]

1714779055

[1714779055]

1714779055

[Upgrade00]

The amount of fiat which would be converted to Bitcoin may not be that huge compared to some of the recent buys into bitcoin, like microstrategy, but it's a positive news. The more small and medium enterprises begin to adopt Bitcoin the closer it would be brought to the locals in various regions as these businesses interact more with the people.

The restaurant operates about 7 cooperate and franchise locations as per the tweet and if they were to accept Bitcoin as a means of making payments while it being their reserve savings asset, there would be no need for payment processors. This would improve Bitcoin adoption significantly.

[20kevin20]

While it's a very very risky move if they're willing to convert it due to the pandemic, I get what they feel. Restaurants have been pretty brutally affected by the pandemic and as an owner of one, having to close indoor activities (here in Romania at least) and lessening the amount of tables and chairs for outdoor restaurants have drastically lowered down their earnings. BUT, is it the best idea to take it all and push it into BTC? It's quite risky considering BTC isn"t considered a safe haven asset necessarily, isn't it?

[fiulpro]

According to the tweet https://twitter.com/TheRealTahinis/status/1295770434349281281. Tahinis, A Canada-based Middle Eastern restaurant has converted all their entire savings to bitcoin.

The decision to turn the cash holdings to cryptocurrencies emerged in the March crash and as the Canadian government started to offer aid services to companies struggling to stay open owing to the pandemic.

With the U.S. and Canada printing money to support their crippled economies, Tahini's owner Omar Hamam began to see the financial system as "a play of tic tac toe being played right now, and music will halt and some people would be left out."

Hamam said he was worried that handouts and money printing would devalue the economy of the fiat. "It was clear to us that cash did not have the same appeal," he added. "In the end, with all the extra currency floating in the market, the capital will be worthless."

He decided to convert the business's savings to Bitcoin as it "gives a much viable choice to saving cash." He said they would proceed to use Bitcoin as a reserve asset — "perhaps permanently if we don't need fiat."

I do believe that the person was thorough with the news of gold being a bad investment in 2020 , most of these Investors are now looking for other options , stock market is down and therefore it is a good time to buy but then again there are many problems in that Sector too and discussing it is another topic.

Right now what we need to know is :

Due to strong integration of bitcoins with economy and the Government, the people are giving positive response towards the cryptocurrencies.

Bitcoins is not only serving as a option in terms of investment but it's also helping many people to expand their businesses.

Cryptocurrency is taxed in Canada as either capital gains or as income tax, depending on whether your activity with cryptocurrency is considered to be as a business or not. 100% of business income is taxable, whereas only 50% of capital gains are taxable

The owners will not only be able to save 50% taxes , but at the same time the future of Bitcoins is promising.

_*_

But no matter what I don't think this idea is really wise , since they would have to wait for a while to encash if needed in a hurry because the price changes every second.

Then again *you don't loose anything until and unless you decide to encash*

They have to apply the HODL strategy if they want to actually get through with this decision.

[cryptomaniac_xxx]

Let me just quote that restaurant themselves and what are the reasons of the owner to convert it to BTC.

1) Going through the crisis of March business was tough on us & people were scared to go out to eat. My cousin, my brother & I let a significant amount of our partners (employees) go and were working day and night to keep the restaurants afloat.

2) It was very tough especially that we are going through an expansion phase. With strong will, long hours and determination we were able to keep all of our restaurants cash flow positive. But we were faced with one big problem.

3) The government assistance programs in Canada made it very hard for us to bring back our partners (employees) as they were making more money staying at home and not working. All of a sudden we went from an economic crisis to everyone having a lot of money Including us.

4) Our Cash reserves swelled and business was booming again. But it was apparent to us that cash didn’t have the same appeal. That eventually with all the excess cash circulating the economy that cash would be worth less.

5) Personally I have been an investor with my personal account over the years. I’ve come across #bitcoin
several times but never really paid attention to it thanks to my investor idol @WarrenBuffett
calling it rat poison...

6) As time went on I was constantly trying to learn and grow my knowledge about finance. I kept bumping into #Bitcoin

7) 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.  It wasn’t until I read @Breedlove22  article The Number Zero and Bitcoin where it all clicked for me.

After that it was the #bitcoin Rabbit hole for me. I spent the next couple of months personally accumulating it in my personal account. I read the bitcoin standard by @saifedean  bought more, read The Price of Tomorrow by @JeffBooth bought more.

9) Read @100trillionUSD
 articles bought more, listened to @TraceMayer  bought more listened to @RaoulGMI   bought more, listened to @DTAPCAP  bought more listened to @stephanlivera  @APompliano  @PeterMcCormack
@TheCryptoconomy  @princey1976  bought more.

10) Every time I see @goingparabolic  posting his buys on twitter I would buy more.

11) For me I view #bitcoin  as a true free savings technology that stores wealth across time and space. And it came apparent to me that there is a game of musical chairs being played right now and the music will stop & some people will get left out.

12) And that’s when we as a company decided to store all of our excess cash reserves into #bitcoin
 as it offers a much better alternative to saving cash. We will continue to do that over the coming years and maybe forever if we don't have a need for the fiat.

3) We will not wait for S&P 500 to start doing so. It already started with @MicroStrategy
 and now @TheRealTahinis
 If you want to follow how we are doing in the future and like to see amazing Food content, give us a follow.

So it seems like a combination of factors, specially those crypto influencers he mentioned + the current pandemic situation that really push him. Goodluck to him and hope he make the right decision.

[Lucius]

https://twitter.com/TheRealTahinis/status/1295770442582695936

I'm glad that at least one man became aware and broke away from the influence of the old fart WB - and all those who still admire him, maybe one day you will realize how much damage he did to Bitcoin with his statements.


This is one nice story about how people who lose confidence in the financial system have an alternative to protect their future, but I don’t think it’s too smart to announce publicly that you’ve made a move like this. I hope this person understands what Bitcoin is in terms of security, and that he has to deal with the risks of losing it no matter how he keeps it.

If he keeps it through custodial service then he is not actually the owner, and if he is his own bank then he has drawn a target on his forehead and invited all thieves to visit him in his home. Personally, I don't see the need to publish something like this to the public, but obviously we don't all have the same criteria when it comes to certain things.

[libert19]

It's quite risky considering BTC isn"t considered a safe haven asset necessarily, isn't it?

I'm quite positive about BTC retaining it's value however not about the security of things where we hold our cryptos. No wallets are perfect and God forbid if his private keys get leaked, that would be catastrophic.

(I'm sorry to be negative Nancy)

[NVZNtoken]

That's great news for the company and I'm sure many more businesses are doing exactly that but 99% of them keep silent about it - announcing you're going all in on bitcoin is a great publicity stunt but many people would be wary about telling the government and the IRS all about the btc they're hodling

[Coyster]

It's quite risky considering BTC isn"t considered a safe haven asset necessarily, isn't it?

Even with the recession, pandemic and the money printing that will cause inflation, bitcoin can't as a result of that be considered as a safe haven asset, so just as you said it is a very perilous decision from this Canadian based restaurant owner. Bitcoin will definitely be an option against inflation and fiat devaluation, but isn't converting all the assets of his business to bitcoin against the rule of thumb of "investing with what you can afford to lose".

Bigger firms that have adopted bitcoin this year have put only parts of their assets, this decision could have consequences, mind you that it's also possible that this person is only using btc for the first time and is not prepared to handle a situation of volatility and FUD, and what it will mean for his business (restaurant).

[In the silence]

This man before this sell his company and his own house in exchange for Bitcoin.
His entire savings also converted into many other cryptocurrencies.
https://www.businessinsider.com/man-in-the-netherlands-sold-everything-for-bitcoin-2017-10#:~:text=Didi%20Taihuttu%20believes%20in%20bitcoin,near%20Venlo%20in%20The%20Netherlands.

[Reatim]

According to the tweet https://twitter.com/TheRealTahinis/status/1295770434349281281. Tahinis, A Canada-based Middle Eastern restaurant has converted all their entire savings to bitcoin.

The decision to turn the cash holdings to cryptocurrencies emerged in the March crash and as the Canadian government started to offer aid services to companies struggling to stay open owing to the pandemic.

If the company converted the savings to Bitcoin?then they are in big profit as of now,not unless they have putted the money in altcoins that has outperform these last run?

With the U.S. and Canada printing money to support their crippled economies, Tahini's owner Omar Hamam began to see the financial system as "a play of tic tac toe being played right now, and music will halt and some people would be left out."

Good for Him that he detected the situation in right manner and he had a Great decision in that part.

Hamam said he was worried that handouts and money printing would devalue the economy of the fiat. "It was clear to us that cash did not have the same appeal," he added. "In the end, with all the extra currency floating in the market, the capital will be worthless."

Well Hope that all companies see the way like what Hamam did for their own good and progress.

He decided to convert the business's savings to Bitcoin as it "gives a much viable choice to saving cash." He said they would proceed to use Bitcoin as a reserve asset — "perhaps permanently if we don't need fiat."

Wow so it is Bitcoin after all?and i congratulate Him for having bright mind to make such decisions.

[yazher]

Well, this kind of news is not that exciting as it was when I first heard a man sold his house to buy BTC and decide to live in a tent where he can spend the rest of his life until the bull run, I wonder what he is doing right now and that man have some family too.

https://www.businessinsider.com/man-in-the-netherlands-sold-everything-for-bitcoin-2017-10

Now we have this news, of course we hope everything will go as they planned. I think this is better than selling your home you know?

[Mi$$sero]

New here, but wouldn't it be a safer play to spread the savings over Alternative coins? Despite Bitcoin being the most stable one, this seems to me like putting all of your life savings to buy shares of a single stock. 

[Debonaire217]

It's quite already a sign that the company is ready to face the possible scenario that the pandemic could brought to us especially with businesses. I can say, it's a good move especially, an establishment that could not reach  their daily quota because of the pandemic and despite the fact that deliveries are available. Perhaps, the owner spent too much time thinking about the risk but I hope he also thought of an idea to still continue the business with positivity especially, applying bitcoin to his business's payment system.

[meanwords]

New here, but wouldn't it be a safer play to spread the savings over Alternative coins? Despite Bitcoin being the most stable one, this seems to me like putting all of your life savings to buy shares of a single stock.  

That is true, but the owner is new to cryptocurrency and probably doesn't see Bitcoin as an investment or a stock but a a life savings that they will sell in probably 20-40 years or so.

Well, there are chances that he might come across with other cryptocurrency and invest in them too. From what I'd read so far, Bitcoin is the only thing he is interested right now since he's lost faith in cash.

[ChiBitCTy]

It's an interesting article / story and I certainly appreciate you sharing it with us.  I think this guy is in over his head just a little bit.  I don't think he really has a true grasp of how things work.  We've all seen bitcoins volatility over the years, and there's absolutely nothing stopping it from going to the equivalent of $1000 US dollars. What if that did happen, where would his business be then?

[LFC_Bitcoin]

This isn’t an isolated incident, fiat currency is losing value & trust. Personally, my money is also 100% in bitcoin, I feel much happier this way than having useless fiat savings.

[ranochigo]

According to the tweet https://twitter.com/TheRealTahinis/status/1295770434349281281. Tahinis, A Canada-based Middle Eastern restaurant has converted all their entire savings to bitcoin.

The decision to turn the cash holdings to cryptocurrencies emerged in the March crash and as the Canadian government started to offer aid services to companies struggling to stay open owing to the pandemic.

With the U.S. and Canada printing money to support their crippled economies, Tahini's owner Omar Hamam began to see the financial system as "a play of tic tac toe being played right now, and music will halt and some people would be left out."

Hamam said he was worried that handouts and money printing would devalue the economy of the fiat. "It was clear to us that cash did not have the same appeal," he added. "In the end, with all the extra currency floating in the market, the capital will be worthless."

He decided to convert the business's savings to Bitcoin as it "gives a much viable choice to saving cash." He said they would proceed to use Bitcoin as a reserve asset — "perhaps permanently if we don't need fiat."

Bad move. Bitcoin is a risky asset to park their funds in without any guaranteed gains. If the restaurant does need money, he probably wouldn't use Bitcoins and has to convert it to fiat. If at that point in time, he's not in profit, then he'll be permanently losing that amount of money. Monetary policies are made to sustain the economy in trying times like these and while it isn't desirable, it has to be done to sustain the economy.

[bitsurfer2014]

If this is a publicity gimmick then its a dangerous one! I cannot imagine what will happen to those restaurants if their business suffered a decrease in revenue for a significant period of time and at the same time, their BTC holdings shrunk because its price dove substantially (hopefully not ) then, I guess they will have a hard time running up their business operations with a weak financial capability and even possibly could lead them to bankruptcy. Imho.

[velomare]

This is definetly only gambling, no one would invest all their money only on a type of assets.