Pepsio’s Hugh Johnson thinks bitcoin is too volatile and too speculative to add to the company’s balance sheet.
In his recent interview with CNBC’s Squawk Box broadcaster, Hugh Johnson, CFO and Vice Chairman of the board of giant Pepsico, stated that he can barely picture his company buying Bitcoin with its cash reserves now, and here’s why.
“Bitcoin is very volatile and highly speculative.”
Hugh Johnson told Joe Kernen that although experience taught him to “never say never,” he still couldn’t imagine PepsiCo investing in the world’s leading cryptocurrency – Bitcoin.
Johnson stated that for him Bitcoin is highly volatile and highly speculative. According to him, it will take a “very long time” before Pepsico can use BTC as functional money.
“I’ve learned over time to never say never… # bitcoin To me it is still very volatile and still very speculative. I think it will be a very long time before # bitcoin become a functional currency for us” Tweet embed Financial Director Tweet embed $ PEP pic.twitter.com/0JE9TozRZm
– Squawk Fund (SquawkCNBC) October 5, 2021
Unlike Pepsico, many public companies have already bought Bitcoin with their cash reserves. Business intelligence software giant MicroStrategy led by BTC evangelist Michael Saylor owns approximately $5.1 billion worth of Bitcoin after its $242.9 million purchase in September.
Bitcoin is back at $50,000
Earlier today, Bitcoin finally managed to regain the crucial level of $50,000 that was last seen in early September – September 7, in particular, when El Salvador announced the adoption of Bitcoin as a legal payment unit.
After the news from El Salvador surged, bitcoin tumbled as China first announced another round of its long-running ban on cryptocurrency transactions and then took another hit and major cryptocurrencies by banning cryptocurrency mining.
This resulted in the largest domestic exchange Huobi and some smaller companies leaving the Chinese market and dropping all of their users in mainland China.
Other exchanges, such as CoinEx, have preferred to move their headquarters out of the country. Some cryptocurrency exchanges have been forced out of business altogether.
China Ban Made Bitcoin Stronger: Edward Snowden
Despite this, some crypto-influencers have stated that China’s lack of cryptocurrency has been better for the industry. One of them was billionaire Elon Musk, who tweeted that the Chinese Communist Party was afraid of Bitcoin because it could threaten its central power in the country. However, he believes that governments around the world will not be able to stifle cryptocurrencies. However, the Tesla chief believes that they may succeed in slowing the progress of crypto globally.
Marty Bennett, co-founder of Great American Mining, believes miners’ exit from China is bullish for Bitcoin, and infamous whistleblower Edward Snowden asserts that the new China Crypto Ban Act has made BTC stronger.
