Bitcoin Scales Just Fine As A Store Of Value Says MicroStrategy CEO Michael Saylor

Not everyone has the opportunity to “duplicate” MicroStrategy’s Bitcoin move.

  • 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.

“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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AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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