- >Ali Hamam from Tahinis Restaurant Converts Cash Reserves Into Bitcoin
Ali Hamam from Tahinis Restaurant Converts Cash Reserves Into Bitcoin
Shortly after MicroStrategy converted $250 million of their balance sheet into Bitcoin, another similar story emerged from Ontario, Canada. A restaurant chain called Tahinis Restaurant based out of London, Ontario converted their cash reserves into Bitcoin. The partner of Tahinis that has lead the decision is Ali Hamam. One of the most interesting aspects about this story is that Ali started investing in Bitcoin in January 2020. The fact of the matter is that he really couldn’t have picked a better time. After the March 2020 crash, Ali doubled down, recognizing that Bitcoin offers a certain level of protection from the turmoil found in economic markets. While Tahinis is not the first business to convert its cash reserves, it may be the first restaurant.
Keegan Francis | Oct 14, 2020
Ali Hamam Interviewed on Go Full Crypto
To catch Ali Hamam’s full story, you can listen to him on the Go Full Crypto podcast. On this podcast, Ali tells his entire crypto story starting from January 2020 when he started taking an interest in Bitcoin as a financial instrument. After acquiring Bitcoin, Ali started to look into it much more closely. This is often the trend we see when someone acquires Bitcoin for the first time. People start to care more about, and research the things that they own. Fortunately there is a wealth of information on the internet about Bitcoin. One of the most influential articles that Ali read was Robert Breedloves “The Number Zero and Bitcoin”. Ultimately the decision to convert a restaurant’s cash reserves into Bitcoin is a controversial one. Hearing Ali describe the series of decisions is well worth the listen.
Cash Conversion is Part of a Bigger Trend
The decision to convert cash to crypto is part of a bigger trend taking place in the world. For example, in 2019 an estimated $50 billion dollars left China, through crypto. The main reason that Ali Hamam decided to convert cash to Bitcoin was because he lost trust in FIAT currencies. That trust is multifaceted, but the main factor is whether or not the money can retain its buying power. This aspect of money has been called into question with respect to the various world currencies amidst high inflation rates. After the March 2020 crash, many world governments were forced to stimulate the economy not through lower taxes, but through the process of printing money. Naturally, people and businesses want to protect themselves from economic harm. The goto solution in the past, was for people to purchase and hold gold, the ultimate scarce asset.
There is a New Gold on the Block
Now that we live in the 21st century, we have modern technology for modern problems. There is officially a new type of gold on the block, and that is digital gold, also known as Bitcoin. In recent news, Warren Buffet for the first time ever, added gold to his portfolio. If there was ever a clear sign of the time, this is it. Warren Buffet has been a staunch proponent of stocks over gold, declaring that gold is an unproductive asset. So why the sudden change of heart? Buffet sees what is happening to the world currencies, and is hedging his bets within his scarce asset of choice. Granted, Warren Buffet invested in a Canadian Gold Mining company, not gold itself. Many businesses and investors are looking at this migration to scarce assets, and making plans to do the same.
Welcome the Big Players
MicroStrategy is the best known example of a company ironically seeking stability within Bitcoin. What will happen when multi billion dollar companies convert even a small fraction of their reserves into Bitcoin? This exact topic was covered recently on The Investors Podcast: We Study Billionaires. Large multinational corporations are discussing within their boardrooms whether or not they should have, even a small amount of Bitcoin in their portfolio. These things take time. The larger the corporation, the slower the process is likely to be. Ali Hamam made the case during the Go Full Crypto podcast that smaller businesses may benefit ahead of multinational conglomerates. This is because decisions are able to take place much faster in small businesses.
Regardless of how long it takes for big players to enter the Bitcoin game, when they do, they’re likely to have an impact. Take Amazon, Apple, Tesla, or Google for example. If any one of these companies were to take even 1% of their cash reserves and purchase Bitcoin, the world would notice. This amount of money would be in the range of billions of dollars. An amount that would surely have an effect on the price of bitcoin at any given point and time. On any given day, there may not even be a billion dollars worth of bitcoin on the market. Granted, some of these companies are more likely to create their own cryptocurrency than jump on the Bitcoin bandwagon.
Ali Hamam to Maximize the Upside During the Storm
There is a storm coming the likes of which the world has never seen. Ali believes that he and his partners can weather the storm by investing in Bitcoin.
Bitcoin is doing the opposite of what the whole world is doing right now. Everyone is out there printing money like crazy, and strengthening itself… People will realize that, and we will see something spectacular.” – Ali Hamam
Ali is referring to the recent halvening that took place on the Bitcoin network in May of 2020. The halvening is a once in every 4 years event that decreases the rate at which new bitcoin comes into circulation. This event comes at a time when the printing of world governments is at an all time high. This means that as inherently less scarce assets (cash) gets even more common place, an inherently more scarce asset (Bitcoin) is getting more scarce.
For many converting cash reserves into Bitcoin seems like an incredibly risky business decision. For those of us in the Bitcoin community, it’s not risky at all. In fact, there are those who hold the sentiment that holding cash is more risky than Bitcoin. Only time will really tell whether or not Ali’s decision will pay off. Regardless, we thank Ali for bravely going where very few restaurant owners have gone before. Ali Hamam from Tahinis Restaurant will go down as cash converting to bitcoin pioneer.