First Publicly-Traded German Company Buys Bitcoin as a Hedge Against Euro Devaluation
Bitcoin “exact antithesis of traditional currencies,” said Lars Müller, CEO of Cannabis company SynBiotic SE.
SynBiotic SE has become the first publicly-traded company in Germany to add Bitcoin to its balance sheet.
Now, Germany has also joined in with SynBiotic SE, a cannabis company, in an attempt to hedge against the devaluation of the euro due to the excessive increase in the money supply of the fiat currency.
“Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar,” said SynBiotic SE CEO Lars Müller on the company’s decision to make a shift to Bitcoin.
Müller further points to Bitcoin’s limited supply of 21 million, which he said is the “exact antithesis of traditional currencies.”
“This limit is fixed and inviolable, which the cryptocurrency‘s decentralized organization and the blockchain‘s tamper-proof nature in turn guarantees,” added Müller, which he said instills “more long-term confidence in bitcoin than in euros or dollars, where a central institution, influenced by politicians, can expand the money supply immeasurably.”
Besides the risk of devaluing fiat currencies, the cannabis sector already has very positive experiences with bitcoin as a digital means of payment. SynBiotic’s several subsidiaries already accept payments in bitcoin in addition to euros.
According to a recent survey, 5% of company executives plan to hold Bitcoin. This increased corporate adoption has Bitcoin nearing the $52,000 level, up over 77% YTD.