Bitcoin Investment against inflation

[romero121]

A London restaurant owner has revealed his story of Bitcoin investment that saved his business from the economic impact out of the pandemic. Restaurant named Tahini has moved its balance sheet to bitcoin once after the decline in the sales. It has got only three branches around. Hamam, the owner mentioned the restaurant's bitcoin investment have spiked to 300% and has served as a hedge against the inflation. The restaurant doesn't accept cryptocurrency, but it continues to invest the fiat on bitcoin. At the time of investment the price of bitcoin was found to be $12000. Now the business have been extended with four more branches in Ontario Canada. Planning for another 20-25 branches within 2022.

Now to encourage cryptocurrency investment he have installed bitcoin ATM on all his restaurant branches.

Data : Bitcoin investment saves London restaurant chain from collapse

[sunsilk]

Nice story.

I guess everyone who has held bitcoin before the covid-19 came up to this point, we all share the same story as him. Bitcoin has helped us to at least have some solutions financially during this crisis.

The bull run has helped a lot of us and especially the patient ones that have been holding for a long time. His business has to roll with fiat and he just can't accept payments directly in bitcoin. But it would be easier for him if he would do that for his bitcoin customers.

[Yogee]

There was no doubt that many small and medium businesses took a huge loss during the early stages of the pandemic and this is an encouraging real life story for them. The only negative thing there is they still do not accept BTC as payment but I also understand the decision as it gives them more option or become more flexible on the amount they want to invest.

[GreatArkansas]

Now to encourage cryptocurrency investment he have installed bitcoin ATM on all his restaurant branches.
(....)

As of the moment, this is one of the best act they did so far. Even they don't yet accept Bitcoin, doing like this, it is already showing support to Bitcoin.
For sure, the owner learn so many lessons, especially on finance, how Bitcoin really works too and he also learns how to invest properly and the power of Bitcoin as a store of value.

[cabron]

And wants to start accepting only these days which means they've bought the BTC they have.

For a restaurant to plan 20-25 branches in the coming years seem to have profited a lot while the economy is crumbling down. Bitcoin saves the lives of the employees too. I wouldn't really try to expand if I were the owner of the restaurant for now. As long as the covid19 crisis still exists, there may not have a good result. Maybe try to if the country where they'd be expanding is more stable than where they currently have.

[pushups44]

I laugh out loud - LOL! - when I see claims that bitcoin is not a hedge against inflation. Yes, bitcoin has steep downward movements during bear and even bull markets, but it has outperformed every other asset since its inception.

Why is bitcoin so popular, aside from its decentralized nature? It is FINITE. It is LIMITED. You cannot make more than 21 million bitcoins. Hence, bitcon is digital gold. In the long run, bitcoin is a hedge to inflation!

[tbct_mt2]

Bitcoin is deflationary because its total supply is 21M at beginning and in the end, in 2140 after 21M all mined, no more new Bitcoin will be created on Bitcoin network. Real total circulating supply will be less than 21M because millions of Bitcoin were lost and will be lost.

With Bitcoin, if you don't own or lose your private key, you will lose your Bitcoin. I am sure many people lose their Bitcoin because lack of knowledge, carelessness and unexpected accidents from catastrophe to human-made reasons.

Fiats can be printed by governments if they want to print more. All fiats lose their purchasing power because of inflation which controlled by governments. Unfortunately, governments don't want to control inflation and their policies are only delaying effects from inflation. In long run, effects occur and affect our lives.

[yazher]

What a good story we have right here. The pandemic was both deadly both for human beings and businesses as well because there are lots of people who lost their job and companies that has closed due to the declined of their sells and some of them didn't recover even though the pandemic has already subsided. It was really a big opportunity if they tranfered their money to bitcoins at that time and we glad to hear such stories of success. That's really a hard decision but he still decided to do it and the fruit of his determination is sweet and success. Congrats to him and good luck in his upcoming branches.

[Dave1]

I guess the restaurant owner is already knowledgeable of bitcoin that time that's why he take the "risk" on hedging his balance sheet into BTC. So I emphasize risk because that's how it is, and the good thing is that we are just in the bull run that time so at $12k->$69k all time high indeed it did paid a lot.

So it's a cool story but I'm sure not everyone has the guts to put their capital on bitcoin right now as we might be in the bear market already.

Timing is everything if we wanted to hedge on bitcoin against inflation, in my opinion. Specially if you are in a business just like the guy in the story.

[Poker Player]

Well, if Bitcoin is the best investment against inflation it is because it is simply the best investment. What gives you the best return is what protects you the most from fiat devaluation. It just lacks to be a little less volatile, but the day that comes, it will be less profitable too.

Regarding the restaurant owner, he has done something similar to Michael Saylor, put his fiat reserves in Bitcoin, he only needs to get into debt to be 100% like Saylor. We do not know if there is any debt in this business expansion, so although he is not borrowing directly to buy Bitcoin, from an accounting point of view he would be doing so.

[avikz]

A London restaurant owner has revealed his story of Bitcoin investment that saved his business from the economic impact out of the pandemic. Restaurant named Tahini has moved its balance sheet to bitcoin once after the decline in the sales. It has got only three branches around. Hamam, the owner mentioned the restaurant's bitcoin investment have spiked to 300% and has served as a hedge against the inflation. The restaurant doesn't accept cryptocurrency, but it continues to invest the fiat on bitcoin. At the time of investment the price of bitcoin was found to be $12000. Now the business have been extended with four more branches in Ontario Canada. Planning for another 20-25 branches within 2022.

Now to encourage cryptocurrency investment he have installed bitcoin ATM on all his restaurant branches.

Data : Bitcoin investment saves London restaurant chain from collapse

Can we really call it a hedge against inflation? I don't think so! It is a hedge against uncertain times. Every business has their investments. What unique here is that they have invested in bitcoin which has given them an unexpected return which saved them from going bankrupt when pandemic hit.

It is good that such stories are coming to light. I am sure we have millions of such stories available all over the world where bitcoin has done great to someone's life. That's the beauty of bitcoin and decentralized technology.

[aoluain]

^
Good point, valued @ $12,000 that was before inflation started to bite. The Bitcoin
market value hasnt been at $12k since October/November 2019.

Anyway it was a good move for sure, the owner could maybe forsee the virus which
was largely confined to China becoming a pandemic. In the end and currently Bitcoin
as we know has become a hedge against inflation which currently is at a 20 or 30 year high.

[Kakmakr]

Well, I bought bitcoins in Feb 2017 for $1,189 and then sold some of them in Oct 2021 for $61,374. So in 4 years and 8 months my return on my initial capital investment was 51.6 times my investment back in 2017.

Ok... using an online Interest rate calculator ... I calculated that with an investment of $1,189 back in 2017 ... your return on investment at an interest rate of say 5% p/a .... you would get compound interest of $328.50 for the 5 years and your end balance will be $1,517.50.
  (After a 4% Inflation Adjustment = $1,247.27)

Does any other investment options, even compete with Bitcoin ? ( Was I just lucky .... No several other people could have done the same, during that 5 year period... with a little less profits that would still wipe out any competition )

[Leviathan.007]

The inflation rate is always rising in long term in any place and any country but still, during this time and during the economic crisis inflation rate was rising even faster and people had to find an investment way to suffer inflation in their lives, so many people started to search and find new investment methods and one of them is investing in bitcoin and other cryptocurrencies however this market can be very much risky for some people but still can save you from the rise of the inflation rate in the long and mid term.

[hugeblack]

Accepting Bitcoin for small shops is nothing more than an addition, but it cannot build an economic model by accepting BTC alone.
Thus, retailers are using bitcoin as a hedge rather than as a payment method, but with cheaper fees and increased adoption, more users will use cryptocurrencies as a payment method.

After several years, we will start hearing stories of establishing shops that accept BTC ONLY without relying on other payment methods, just as is happening now from digital shops that do not accept cash.

[OcTradism]

A London restaurant owner has revealed his story of Bitcoin investment that saved his business from the economic impact out of the pandemic.

It can be helpful this time, in this pandemic time but it is not a good strategy if a small company save all business fund in Bitcoin or any cryptocurrency.

I know Bitcoin has very good growth rate but it is only safe in long term perspective. If a small company save all fund in Bitcoin and if things on the market go badly in short term, it is terrible for that company without other resources. Then the company will have to sell Bitcoin for fiat. What if they have to do this in a 30% crash? It's terrible situation even you know Bitcoin will recover and grow more in next few months or years.

[Sterbens]

A London restaurant owner has revealed his story of Bitcoin investment that saved his business from the economic impact out of the pandemic. Restaurant named Tahini has moved its balance sheet to bitcoin once after the decline in the sales. It has got only three branches around. Hamam, the owner mentioned the restaurant's bitcoin investment have spiked to 300% and has served as a hedge against the inflation. The restaurant doesn't accept cryptocurrency, but it continues to invest the fiat on bitcoin. At the time of investment the price of bitcoin was found to be $12000. Now the business have been extended with four more branches in Ontario Canada. Planning for another 20-25 branches within 2022.

Now to encourage cryptocurrency investment he have installed bitcoin ATM on all his restaurant branches.

I have highlighted some points that can be taken and the readers are very clear that this is proof that the benefits that Bitcoin offers are long-term durability of value. The addition of 5x more branches than usual indicates that the restaurant owner already knows what he should allocate for his future. This story is a big picture for the economic industry when it is experiencing a crisis that is not balanced in financial management during a pandemic.

[goldkingcoiner]

Seeing as Bitcoin was created as a deflationary money system, it is a very good investment against fiat inflation, I would say. However that can also go both ways. So if for some reason, the US government decided to start "burning" dollars as to increase the buying power of each dollar, then by contrast, this would drive the price of Bitcoin down and could also push people invested in bitcoin into a panic sell.

But I doubt that will happen.

[fiulpro]

I do think some people consider it a currency and some consider it an investment, I do think that considering Bitcoin an investment is always a good idea, I do think that it's nearly impossible to trust any investment right now because of the current market situation but when we consider bitcoins and cryptocurrencies they are not only profitable for the people during the time of pandemic but at the same time the whole system is collapsing and close to destruction. Inflation is something that people have to tackle right now and in some countries like Ukraine the government is ordering the cheapest markets to remove the cheap products because the government wants to regulate the prices. It's not just the pandemic it's the whole government handling of the situation.

[OcTradism]

Seeing as Bitcoin was created as a deflationary money system, it is a very good investment against fiat inflation, I would say. However that can also go both ways. So if for some reason, the US government decided to start "burning" dollars as to increase the buying power of each dollar, then by contrast, this would drive the price of Bitcoin down and could also push people invested in bitcoin into a panic sell.

But I doubt that will happen.

Government won't burn dollars. They can print their fiats from thin air and do give-away events to their citizens but they won't officially operate and announce any burn events as deflationary mechanism. They can burn damaged or unusable fiats but it is not burn for deflation. They will mint more new fiats to replace it later.

Bitcoin is deflationary by design which can not be changed by a single person. Changes are possible but only if the Bitcoin community can reach to a consensus for big changes in protocol. I think the community will never vote to change Bitcoin from deflationary to inflationary. If dollars go down in purchasing power more and more significantly, more people will recognize this painful fact, and Bitcoin will be their choice to be survived and get rich.

Purchasing Power of the U.S. Dollar Over Time