Is this the wrong advice? A friend of mine took over his father's company because he is so old already and he told me about the money thats available doing nothing in the bank.
I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.
Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.
You can't ask a business to invest all its capital in bitcoins because there's a whole lot of risk involved. When all the capital of a business is invested in Bitcoin, if for some reason the Bitcoin investment is lost or hacked, then all the investment will be wiped out, in which case the investor will likely go bankrupt. So business profit you can suggest to invest in bitcoin otherwise I will not support to invest in bitcoin with all the capital. I consider your suggestion to be entirely unreasonable at present, and I assume it to be in a danger zone.
I wouldn't hesitate to say that OP's suggestion to his friend to take the company budget and invest in a volatile asset like bitcoin is actually bad advice. Most people are blinded by just looking at the profits that bitcoin brings without realizing that bitcoin also has unpredictable risks. No investment can bring high profits but is safe and bitcoin is no exception.
I'm a bitcoin investor, but if given a choice between running a business with steady revenue and investing in bitcoin, I'd choose to run a business. Bitcoin is just the hope of many people who have small capital in hand and wish to become rich or make miracles out of it. As for those who already have a large amount of capital or are running a business with a stable income, they need to have a suitable investment plan and should not focus entirely on bitcoin, a volatil asset and risk.
I agree, that advice doesn’t sound good. Putting company money into Bitcoin or anything that can go up and down a lot is really risky. Bitcoin can make a lot of money, but you can also lose a lot quickly. Its better to keep running a business that makes money regularly than to bet it all on Bitcoin. For businesses with a steady income, its important to be careful and not just focus on risky things like Bitcoin.