US will not benefit from Bitcoin: Hugh Jhonson

  • Johnson is of the opinion that the corporate society of America will not be benefitted from the use of Bitcoin
  • Bitcoin will neither have any positive effect and cannot be included in the balance sheet of the company 
  • more conventional managers see it as a risk to invest in bitcoin

The CFO of PepsiCo Hugh Jhonson doesn’t seem to be in favour of Bitcoin, despite it is rallying high in the crypto market. Johnson is of the opinion that the corporate society of America will not be benefitted from the use of Bitcoin.  It will neither have any positive effect and cannot be included in the balance sheet of the company. 

According to the analysts, the rise in prices of Bitcoin will see more whale investors coming forth, whereas Jhonson thinks the opposite. As per the report, the high speculation of the popular crypto is contrary to companies’ wishes to handle their assets. 

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It is no doubt that the price rise in bitcoin has helped the CEOs of the companies who have invested in the token in recent months, more conventional managers see it as a risk to invest in bitcoin. They feel it is a risk if they intend to use it for share buybacks, new plans, contingencies and much more. 

China’s ban on crypto 

China is one country that has completely banned cryptocurrencies and restrictions on mining cryptocurrencies. The government has cut the number of sectors where investment is minimum. 

As per the reports, China put a hold on crypto trading and mining earlier this year as part of the crackdown to try to get rid of the illegal cryptocurrency activities and electricity shortage due to mining in the country. It was impacting the environment which resulted in putting a ban on crypto mining. This resulted in exchanges shutting operations in the country and moving to new locations which are crypto-friendly. Several miners also moved to other countries which are welcoming mining activities at a friendlier cost to them. 

The country has thus far doubled down by trying to control the discourse, chastising the entertainment sector for “polluting” society and requesting that mobile browsers remove rumours and sensationalist headlines from the material.

On the other hand, the crypto community in the US will finally get the US Bitcoin exchange-traded fund. There are four types of products and the Securities and Exchange Commission (SEC) will decide the fate of the applications of the ETFs by the end of this month. 

The ETFs will offer bitcoin futures instead of the asset itself. They will be filed under the Investment Company Act of 1940. It will give full protection to the investors. The ETF industry is $6.7 trillion in the US, but it is not for bitcoin. Canada and several other European nations are already possessing some ETFs. 

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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