South African Firms turn to Crypto as Hedge Against Cash Devaluation
April 1, 2021 5:22 AM
Reports originating from South Africa has suggested that a host of privately held firms are beginning to follow the footstep of Tesla.
According to reports circulating in South Africa, local companies are starting to move some of their cash holdings into bitcoin as they seek to evade currency devaluation in the country.
Specifically, a recent report revealed LSD Open an open-source software specialist company could be set to be the first South African firm to move part of its balance sheet into bitcoin in the country after it acquired $134,000 as reported by local media.
However, a local report understands that LSD Open completed its latest bitcoin purchase in two segments and at an average price of around $34,000 per bitcoin. At press time, the current price of LSD Open holdings in BTC is estimated to have grown by over 70% in value. The report also asserted that LSD Open bitcoin purchase has was facilitated by local crypto exchange Bitfund.
Stefan Lesicnik the CEO of LSD Open is quoted explaining how bitcoin's characteristics are in line with the company philosophy. Lesicnik stated:
We have a vision that is to make the world open and judging by Bitcoin qualities, It perfectly supports our belief in how the world works best.
Lesicnik added that working in the open-source domain seems to attract loads of crypto enthusiasts who believes in the decentralized and open-source nature of crypto assets. The CEO revealed that LSD Open is greatly involved in the expanse of the digital assets ecosystem which constitutes maintaining and running full bitcoin nodes.
Nonetheless, LSD Open will not be the only South African-based company to purchase bitcoin. The report also quotes Dean Joffe, co-founder of south African crypto exchange Bitfund. Joffe revealed how his company has assisted over seven South African firms in acquiring bitcoin.
The Bitfund co-founder also stated according to the report, that his organisation is also speaking with two other companies listed on the South African stock exchange to purchase bitcoin.
Though the report clarified that those companies have not jumped onto the bitcoin ship with Bitfund yet.