Hugh Johnson of Pepsio giant says Bitcoin is too volatile and too speculative to add to company balance sheet
In his recent interview with CNBC’s Squawk Box anchors, the chief financial officer and Vice Chairman of the PepsiCo behemoth, Hugh Johnson, stated that he can hardly imagine his company buying Bitcoin with its cash reserves now. Here’s why.
“Bitcoin is too volatile and too speculative”
Hugh Johnson told Joe Kernen that even though experience has taught him to “never say never”, he still can’t imagine PepsiCo investing in the world’s flagship cryptocurrency – Bitcoin.
Johnson stated that, for him, Bitcoin is too volatile and too speculative. According to him, it will be “a very long time” before BTC can be used by Pepsico as a functional currency.
Unlike Pepsico, several public companies have already purchased Bitcoin with their cash reserves. Business intelligence software giant MicroStrategy, led by BTC evangelist Michael Saylor, now has around $ 5.1 billion in Bitcoin after buying $ 242.9 million in September.
Bitcoin is back at $50,000
Earlier today, Bitcoin finally managed to recapture the crucial $50,000 level where it was last seen in early September—Sept. 7, to be exact, when El Salvador announced the adoption of Bitcoin as a legal tender.
After surging on news from El Salvador, Bitcoin plunged as China first announced another round of its long-running crypto trading ban, then took another jab and the flagship crypto by banning crypto mining.
This resulted in the largest local exchange, Huobi, and some smaller ones leaving the Chinese market and dropping all of its users in mainland China.
Other exchanges, like CoinEx, preferred to relocate their headquarters from the country. Some crypto exchanges were forced to quit the business completely.
China’s ban made Bitcoin stronger: Edward Snowden
Some crypto influencers, however, have said that the less China there is in the crypto industry, the better for the industry. One of them was centibillionaire Elon Musk, who tweeted that the Communist Party of China is afraid of Bitcoin as it may threaten its centralized power. However, he believes governments around the world will not be able to quell crypto. Still, the Tesla chief believes that it may succeed in slowing down crypto advancement globally.
Great American Mining co-founder Marty Bent believes the mining exodus from China is bullish for Bitcoin, and infamous whistleblower Edward Snowden believes the new China Crypto Ban has made BTC stronger.
