With $88 billion currently held in cash and marketable securities, shareholders say that these holdings are vulnerable to inflation and currency devaluation. They are urging the company to explore alternative strategies to preserve and increase shareholder value.
This is not just a theory: there are real performance metrics that back up the case for Bitcoin. Over the past year, there has been a 131% increase in the value of BTC, significantly outpacing corporate bonds, which have lagged behind. Over five years, a 1,246% increase in the BTC price makes the contrast even starker.
While the proposal to add Bitcoin to Amazon’s treasury raises questions about volatility, it has also sparked suggestions regarding the cryptocurrency’s practical use. CZ, the former CEO of Binance, offered a straightforward idea: Amazon could start by accepting Bitcoin as a payment method.
Some people have said that Bitcoin is not a good way to make payments because it takes a long time to confirm transactions. But as CZ pointed out, BTC is reliable. Even when it is delayed, it still works, and it does not need any intermediaries or approvals, which is a major improvement over traditional financial systems.
For Amazon, the implications of such a move are many. Beyond the immediate diversification of its asset holdings, adopting Bitcoin could position the company as a leader in the corporate cryptocurrency landscape.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
