At the Bitcoin Amsterdam Conference 2024, Julian Liniger, CEO of Relai, took to the stage to discuss a growing trend: small and medium-sized enterprises (SMEs) adopting Bitcoin. Liniger shared his insights on how Bitcoin can serve as a strategic advantage for businesses of all sizes. Previously, discussions about Bitcoin focused mainly on individual and institutional investors.
Recently, however, SMEs have begun to recognize Bitcoin’s potential, shifting from traditional cash reserves to Bitcoin as a treasury asset. Relai has already assisted in onboarding around 100 businesses, surprising even Liniger with the diversity of companies expressing interest in Bitcoin.
Liniger stated that the primary reason businesses are turning to Bitcoin is its ability to preserve purchasing power. Unlike traditional currencies that lose value due to inflation, Bitcoin’s supply is capped, which allows for potential growth in value over time. He also noted that this trend isn’t limited to tech or financial companies.
Craftsman’s company
The first category, according to Liniger, consists of small, hands-on businesses, often called “craftsman companies.” These include trades like carpentry, electrical work, and construction. Typically employing around 10 to 15 people, these businesses play essential roles in their communities.
Liniger pointed out that the owners of these companies frequently face challenges related to the diminishing value of cash. As inflation and other economic pressures make their savings feel less secure, many business owners start exploring alternative options to protect their wealth.
This exploration often leads them to Bitcoin, which offers the potential for value preservation. Liniger noted that more than 40% of the businesses his organization has integrated into the Bitcoin ecosystem fall into this category, demonstrating a surprisingly broad adoption of Bitcoin beyond just the tech and finance sectors
Service-based businesses
The second category includes service and consulting firms, encompassing businesses like advisory services, software development companies, and design agencies. These firms, whether large or small, might not initially have any connection to Bitcoin.
However, as their owners discover the personal benefits of Bitcoin—such as its value preservation and decentralized nature—they begin to adopt it for their companies. Liniger expressed confidence that this trend will continue, as entrepreneurs are typically open to new ideas and innovations.
This growing community of Bitcoin enthusiasts, particularly among business owners, fosters an environment that encourages further adoption and integration of Bitcoin into corporate practices.
Real estate and commodity businesses
The third category highlighted by Liniger includes companies involved in real estate and commodity trading. These businesses, already managing tangible assets like property, are increasingly looking to diversify their investments by incorporating Bitcoin.
By reallocating some of their cash reserves and real estate holdings into Bitcoin, these companies aim to gain exposure to a digital asset with potential for appreciation. This strategic shift acknowledges Bitcoin’s value as an alternative investment, particularly amid a changing economic landscape.
Liniger’s insights suggest that small, hands-on businesses, service and consulting firms, and companies in real estate and commodity trading are leading the way in Bitcoin adoption. This trend illustrates a broader acceptance of cryptocurrency across various industries. Entrepreneurs and business owners are increasingly leveraging Bitcoin as a solution to economic challenges.
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The growing integration of Bitcoin into these diverse business sectors signals a promising future for the cryptocurrency, as it becomes an integral part of the financial strategies of businesses across the board.
Further case studies
According to Liniger, these case studies highlight how his firm has integrated more businesses into Bitcoin. The first example involves a gold brokerage company in Europe. This company believes in “hard money,” viewing gold as a more reliable form of wealth compared to fiat money, which they trust less.
They share similarities with Bitcoin enthusiasts, valuing precious metals for reasons akin to why Bitcoiners value Bitcoin. This brokerage is purchasing $100,000 worth of Bitcoin monthly, totaling over a million dollars annually.
Their goal is to diversify their investments by shifting some funds from gold to Bitcoin, which they see as an emerging digital asset. Liniger predicts that many other gold brokers may adopt this strategy in the coming decade.
The second example features a real estate company that owns about 40 to 50 buildings. This company buys and develops properties to rent. Like many real estate businesses, they maintain a financial reserve for each building to cover unexpected repairs or renovations.
He noted that these businesses realized keeping their reserves in euros no longer made sense. Over time, the purchasing power of the euro can decrease significantly. Instead, one of their clients decided to invest this reserve in Bitcoin, buying between $10,000 and $50,000 worth of Bitcoin for each building.
This strategy ensures they have the necessary funds for repairs or renovations while also benefiting from the potential growth in Bitcoin’s value. Liniger points out that as the value of money has declined, so has the quality of buildings. By switching to a currency like Bitcoin, which is expected to increase in value, he believes the quality of buildings and architecture will improve in the coming years.
The final example is a dentist who contacted Liniger’s colleague. Introduced to Bitcoin by a friend, the dentist recognized its potential. He bought Bitcoin for himself and plans to use part of his savings to invest in new dental equipment in the future.
Realizing that traditional money (fiat) might not enable the investments he desired, he decided to invest $200,000 in Bitcoin. He manages this investment with his partner using a secure setup, providing him more control over his financial future.
Liniger noted that this small dental practice, with just three or four employees, demonstrates how even smaller businesses can benefit from investing in Bitcoin to enhance their financial standing and plan for the future.
