A Gartner survey finds out that a majority of finance executives are not planning to hold Bitcoin as a corporate asset.
The value of Bitcoin more than quadrupled in 2020 and rose further in recent weeks after Tesla CEO Elon Musk disclosed a $1.5 billion investment in bitcoin and Twitter mulled paying employees or vendors using the cryptocurrency.
In a recent survey of 77 global CFOs by Gartner, 84% of respondents said they did not plan to ever hold bitcoin as a corporate asset, according to Gartner, Inc
“Eighty-four percent of the respondents said that bitcoin’s volatility posed a financial risk,” said Alexander Bant, chief of research in the Gartner Finance practice. “It would be extremely difficult to mitigate the kind of price swings seen in the cryptocurrency in the last five years.”
Volatility was the top concern by a large margin, but other big issues that respondents had were board risk aversion, slow adoption as an accepted form of payment, regulatory concerns, and a lack of expertise in cryptocurrencies.