Bitcoin Scales Just Fine As A Store Of Value Says MicroStrategy CEO Michael Saylor
- Publicly traded software company MicroStrategy has amassed a total of $38,250 BTC worth $425 million.
- But how come this much bitcoin buying didn’t affect the market, pushing the price of BTC skywards?
According to the company CEO Michael Saylor, the first 21,454 BTC purchase, disclosed in August, for the reserve has been made through 78,388 off-chain transactions. From there, with 18 on-chain transactions, this acquisition was secured in the cold storage. He tweeted,
“If Bitcoin is treated as a treasury reserve asset, based on our model, 99.98% of all transactions will be off-chain, and assets-at-risk will be in cold storage 99.92% of the time.”
This means, “Bitcoin scales just fine as a store of value,” said Saylor.
The MIT alumnus recently shared that he would choose to live with a highly volatile asset Bitcoin than go with non-volatile negative real yield generating assets – gold, bond, and cash that drains the lifeblood out of veins.
According to him, the digital asset is the ultimate inflation hedge, which is 1000x better than the precious metal.
“MSTR due diligence into Bitcoin and their trading execution buying $450M, establish a new high water mark of professionalism in this industry,” said Max Keiser, a bitcoin proponent and founder of Heisenberg Capital.
Crypto market participants hail MicroStrategy's decision to replace cash with bitcoin in its reserve as a new precedent.
With bitcoin having a fixed supply of 21 million, out of which millions have also been lost forever, not everyone would be able to make a move like MicroStrategy. Recently, we also saw other small scale companies like Tahini’s and Snappa convert their cash reserves into Bitcoin.
MicroStrategy, a nimble publicly listed company, took 6 months to approve and complete their deployment into BTC.
The average publicly listed company may take 9-12 months for the same process.
(start your timers, 2021 will be interesting)
— Willy Woo (@woonomic) September 18, 2020
“Even half a percent of these companies trying to duplicate the move will completely drain the available supply of Bitcoin,” noted Jason Deane, an analyst at Quantum Economics.
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