Pepsico’s CFO: Bitcoin is too risky.

Pepsico’s CFO: Bitcoin is too risky.
The charm of investing in BitCoin is in repeated price increases. That’s it. Managers of the largest companies around the world keep saying this.

Pepsico’s chief financial officer repeated the same thing recently when he mentioned that the prospect of Bitcoin soon hitting the company’s balance sheet was unlikely. In a recent interview with CNBC’s Squawk Box, Hugh Johnson, who is also a vice president of the beverage giant Pepsico, stated that he was always taught “never say never.”

However, he added that he simply couldn’t imagine his company buying Bitcoin with its cash reserves. Reason? Bitcoin is “too volatile and too speculative.” He further said: “When we have free cash, we tend to look more than anything else at security and liquidity in investments.” Therefore, the director believes it will be an “awfully long time” before BTC is used as functional money by Pepsico.

This is not the first time Johnson has voiced his criticism of a new asset class. Earlier this year, he stated: “The conclusion we came to quite quickly was that Bitcoin is too speculative for the way we manage our cash portfolio.”

These earlier comments came after electric car maker Tesla announced the purchase of Bitcoin for $ 1.5 billion. Along with Tesla, MicroStrategy is a leading publicly traded company with billions of dollars in virtual currency, and CEO Michael Saylor regularly buys BTC into his company’s resources.

Proponents such as those mentioned above and others believe that price volatility is a minor factor compared to Bitcoin’s appreciation over time and its outlook as a long-term investment.

07-10-2021, Mr Advice TEAM

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