Ned Segal, Twitter’s chief financial officer (CFO), said in an interview with CNBC’s Squawk Box that depending on the opinions of employees working on Twitter, their salary could be paid through Bitcoin, the most valuable cryptocurrency. Although board members and Segal are considering the matter, they haven’t yet made a final decision.
He added that Bitcoin is one of the top assets in the world and in a situation where almost everyone is increasingly attracted to Bitcoin, the opinions of employees of Twitter will determine whether they actually support Bitcoin.
“When we hedge currencies, when we do business in another country, when we think about all the different exposures that we have, we’re really trying to match our assets and our liabilities, and we take the same approach to Bitcoin that we do to all the other types of risks that we have.”
The value of Bitcoin has risen by nearly $3,000 in just 1 minute after Tesla invested $1.5 billion in Bitcoin this week, suggesting that if Twitter successfully decides to use Bitcoin as a salary for its employees, a new dimension of Bitcoin will be added and for a second time Bitcoin is going to be supported by such a big company.
On 11-Feb-2021, Bitcoin has an all-time high (ATH) value of $48,373, which market analysts and financial advisors had previously predicted Bitcoin would touch $50,000 in a single week in February.
Investors are already investing in Bitcoin and Twitter stocks, seeing the potential of Twitter towards cryptocurrency. In 5 days, Twitter’s stock value has increased by about 24%.
In an interview with CNBC on Thursday, Uber CEO Dara Khosrowshahi revealed that Uber could purposely use Bitcoin but didn’t consider investing in Bitcoin as part of its treasury.
“Just like we accept all kinds of local currency we are going to look at cryptocurrency and or $bitcoin in terms of currency to transact. That’s good for business, that’s good for our riders and our eaters,” says
“We are just not going to do it as part of a promotion.”
“It was a conversation that happened that has been quickly dismissed. We’re going to keep our cash safe. We’re not in the speculation business,” said Khosrowshahi.
In this digital era, distancing oneself from digital currency is a big decision, but it’s not yet known whether it’s the right decision or the wrong one. No company has a direct link to crypto. Cryptocurrency isn’t used as a common currency as it can be easily manipulated. The wallets of certain crypto holders hold about 50% of the crypto, making market manipulation much easier and this is why big companies aren’t yet joining cryptocurrencies.
Probably for the same reason as Twitter’s stock price (mentioned above), Uber’s stock price is also seeing a good pump.