Scenario:

You have just been hired as a CFO by BitMax Sdn Bhd, a Malaysian company specializing in supplying high-value products such as insulators, valves, and pumps to the oil & gas, and power plant companies. Its customers are the likes of Petronas and TNB, amongst others. BitMax imports these products from several countries, including China, the US, Japan, and Brazil. The business works so that BitMax has to bid for a tender, and if it wins it, it gets to supply the goods. These goods are not available in-store. Instead, an order has to be placed with manufacturers, and it usually takes several months to deliver the goods.

So far, BitMax has been paying for goods through its bank, CIMB Bank, and the fees were quite substantial. In addition to high bank fees, the company has been making significant losses due to unfavorable Ringgit fluctuations and poor hedging practices by the previous CFO. All these have contributed to BitMax becoming less competitive in the market, which is one of the main reasons your predecessor was fired.

Your boss, the CEO of BitMax, has heard a lot about Bitcoin and its potential benefits. She has been considering for some time using Bitcoin as a means of payment. You are having the first official meeting with your CEO and the senior management, in which they want you to brief them on the option of introducing Bitcoin as a means of payment in their business. More specifically, you are required to address the following:

1. a) What are Bitcoin's advantages and disadvantages?

2. b) Is Bitcoin a viable currency? Do you think that it will grow to be significant, marginal, or die off? (when answering these questions, revisit the definition and functions of money)

3. c) If some of BitMax's suppliers are willing to accept Bitcoin as a means of payment, would you recommend that BitMax starts paying them in Bitcoin?

4. d) For liquidity management purposes, BitMax invests in various securities and commodities. Would you recommend Bitcoin to be included in BitMax's investment portfolio? Why or why not?