Bitcoin

3 reasons MicroStrategy embraces Bitcoin and why others do too

MicroStrategy introduced Bitcoin (BTC) as a reserve currencyAnd shocked commentators Purchased over 21,000 BTC on August 11th.

The world’s largest publicly traded business intelligence company has exchanged fiat money for bitcoin as a treasury reserve assetHowever, the reasons for this suggest that larger companies have no choice but to do the same.

Why did MicroStrategy choose Bitcoin and why are others doing the same?

Digital gold

3 reasons MicroStrategy embraces Bitcoin and why others do too
3 reasons MicroStrategy embraces Bitcoin and why others do too

In a press release published on August 11, CEO Michael Saylor went further than most and called Bitcoin “digital gold”.

Without “what if” or “but”, Saylor unreservedly placed the largest cryptocurrency for both fiat money and other traditional safe-haven assets like gold.

“”Bitcoin is digital gold, harder, stronger, faster and smarter than any money that came before it, “he commented.

This view closely mimics some of Bitcoin’s leading proponents, notably Saifedean Ammous, who repeatedly states the call in his book The Bitcoin Standard “Digital scarcity” puts Bitcoin in a different position than any other form of money that has existed.

Like Ammous, Saylor believes that too Bitcoin’s own structure ensures that its value only increases over time.

He added:

“”We expect its value to increase with advances in technology, increasing adoption, and the network effect. It has fueled the rise of so many “category killers” (retailers, chain stores, bestselling products, etc.) in modern times. “

Doubts about the future of the Fiat

Bitcoiners were particularly excited about MicroStrategy, as it apparently replaced the fiat currency with the cryptocurrency.

Your purchase of 21,454 BTC for a total of $ 250 million late last month may not only be symbolic (given the total of 21 million BTC), it also means that it is The company controls 0.1% of all bitcoin supplySomething that is becoming increasingly expensive to replicate for competitors.

“MicroStrategy bought 0.1% of the Bitcoin supply. Very few companies can copy this strategy,” tweeted in response the moderator of the “What Bitcoin Did” podcast, Peter McCormack.

For Saylor, Several red flags convinced him to turn to Bitcoin.

These include “the COVID-19-triggered economic and health crisis, unprecedented government stimulus measures, including quantitative easing passed globally, and global political and economic uncertainty,” he said. .

When he went on, he argued that What started as a result of Covid-19 won’t cause more problems until later::

“We believe that together These and other factors can significantly depreciate the long-term real value of fiat currency and many other types of conventional assets.including many assets traditionally held as part of corporate treasury operations. “

Cointelegraph has reported on those frequently adverse effects of practices such as quantitative easingand voices urging consumers to abandon the fiat system en masse in order to protect their long-term prosperity.

For Jason Yanowitz, founder of the BlockWorks Group financial media network, Saylor’s reserves will eventually find their way across the business.

“The CEO of MicroStrategy said that bought bitcoin to avoid inflation“, completed.

“In time, all public companies will do the same.”

Cointelegraph noticed this this week Bitcoin’s value appeared to follow the behavior of inflated central banks’ balance sheets in 2020.

Bitcoin’s “Checkpoint”

After all, Saylor was especially flattering to Bitcoin, and didn’t mention whether the company was considering other cryptocurrencies at all.

“We see the global acceptance, brand awareness, vitality of the ecosystem, network dominance, resilience of architecture, technical utility and the community spirit of Bitcoin as convincing evidence of its superiority as an asset class for those looking for long-term store of value“said.

Bitcoin’s eleven-year lifespan has meant that it remains the largest cryptocurrency, avoiding multiple concerted efforts to undermine it.

As Ammous and many others often explain Bitcoin has proven itself through this method and Altcoins have not been shown to achieve the status and popularity of Bitcoin.

Miners’ preference for Bitcoin supports the theory that the security and exploits of the market will only increase in the long run: The technical foundations of Bitcoin are still in a broad upward trend, a result of miners adding more and more resources to the network.

Don’t stop reading:

Similar Posts