5% of Companies Plan to Hold Bitcoin as Corporate Asset This Year: Gartner Survey
Some companies are worried about the extreme volatility of Bitcoin. But this is actually a feature, not a bug.
The latest survey conducted by Gartner Inc., consisting of 77 finance executives, including 50 CFOs, showed that 5% of them plan to hold bitcoin on their balance sheet this year.
84% of respondents, however, said they do not plan on ever purchasing the leading digital currency as an asset, which is nearing $52,000.
Volatility was the biggest concern of these naysayers, with 84% of respondents saying Bitcoin’s wild price swings pose a financial risk, the February survey said.
“It would be extremely difficult to mitigate the kind of price swings seen in the cryptocurrency in the last five years,” said Alexander Bant, chief of research at Gartner Finance.
On-chain data suggests that the #Bitcoin widespread institutional interest may have already begun.
The average transaction size recorded on the Bitcoin blockchain recently hit a record of $440,000.
This metric has increased by a whopping 16x in just 12 months. pic.twitter.com/9ASYhW3V8v
— IntoTheBlock (@intotheblock) February 16, 2021
According to Mike McGlone, a commodity strategist at Bloomberg Intelligence, who sees $100,000 as a longer-term target, the volatility may continue to rise in the near term “until it settles in around its next plateau.”
For the crypto market, the famed volatility is actually a feature rather than a bug. Antoni Trenchev, the co-founder of crypto lender Nexo, reminded that Bitcoin never moves up in a straight line and
“Short-term volatility is very much a feature of this bull market.”
Besides volatility, broader risk aversion, digital currency’s slow adoption as an accepted form of payment, regulatory concerns, and cyber risks were also among the concerns.
“There are a lot of unresolved issues when it comes to the use of Bitcoin as a corporate asset. It’s unlikely that adoption will increase rapidly until we get more clarity on these challenges,” Bant said.
The survey came while publicly-listed MicroStrategy shared its plan to issue another debt round of $690 million to add to its 71,079 BTC stash. Earlier this month, Elon Musk’s Tesla also bought $1.5 billion worth of Bitcoin.
“The mood, music, and momentum is impossible to ignore,” said Trenchev. “To the annoyance of many, the Bitcoin express has left the station.”