Presenting The 3 Reasons Why MicroStrategy Adopted Bitcoin And Are Others Following?

The Bitcoin As Viewed By MicroStrategy

Calling it digital gold, the CEO of the company that just bought 21,454 BTC has the tide causing the business world to admit the same according to supporters. 

It stunned commentators by purchasing over 21,000 BTC on Aug 11 as MicroStrategy has adopted Bitcoin as its reserve currency. 

Swapping fiat for bitcoin as the treasury reserve asset, the world’s largest publicly traded business intelligence company whereas suggesting that more big businesses will have no choice but to do the same as the reasons behind it. 

The Reason As To Why Microstrategy Chose Bitcoin, And Will Others Follow?

All About Digital Gold

CEO Michael Saylor went further than most by calling Bitcoin digital gold in a press release issued on Aug 11. 

Saylor unreservedly plugged the largest cryptocurrency over both fiat and other traditional safe-haven assets such as gold with no “ifs” or “buts”

He commented that as Bitcoin is digital gold, it is harder, stronger, faster, and smarter than any money that has preceded it. 

Notably SaifedeanAmmous in his book “The Bitcoin Standard” repeatedly explained that the so-called digital scarcity put bitcoin in a separate league to any other form of money which has ever existed as the angle closely mimics some of Bitcoin’s foremost proponents. 

Just like Ammous, it is believed that Saylor is also of the view that bitcoin’s very structure ensures that its value will only increase with time. 
Furthermore, he added that with advances in technology, we expect its value to accrete expanding adoption as the network effect has fuelled the rise of so many category killers in the modern era. 

The Doubts Over Fiat’s Future

As it unashamedly replaced fiat currency for cryptocurrency bitcoiners were particularly excited about MicroStrategy. 

As something that competitors find increasingly expensive to replicate, the purchase of 21,454 BTC for an aggregate price of $250 million late last month as it may not only be symbolic but also means that the company controls 0.1% of the total bitcoin supply. 

According to Peter McCormack, What Bitcoin Did podcast host, as MicroStrategy bought 0.1% of the Bitcoin supply, very few companies are able to copy the strategy. 

There are multiple red flags swayed for Saylor to turn to Bitcoin. 

He continued that there were many other things including the economic as well as public health crisis precipitated by COVID-19, thereafter the unprecedented government financial stimulus measures including quantitative easing adopted around the world added to global political and economic uncertainty. 

He has also continually argued that what began as a result of COVID-19 would only be causing further problems later on. 

Some factors may well have a significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types believed to include many of the assets that were then held as part of those corporate treasury operations traditionally. 

With voices urging consumers to abandon the fiat system en masse to protect their prosperity in the long term, it was often reported on the detrimental impact of practices such as quantitative easing. 

Saylor’s reservations will ultimately spark trailblazing from the entire business sphere for Jason Yanowitz the founder of financial media network BlockWorks Group. 

As he summarised, the CEO of MicroStrategy has then bought Bitcoin to avoid inflation. Every public company is eventually set to do the same. 
It was also noted this week that Bitcoin value appeared to be tracking central banks’ inflating balance sheets in 2020. 

What Is Bitcoin’s “Schelling Point”?

Not mentioning that the company even considered any other cryptocurrencies, Saylor finally was highly complimentary about Bitcoin in particular 
He thought that being the persuasive evidence of its superiority as an asset class for those seeking a long term store of value finding global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility as well as community ethos of Bitcoin. 

The eleven-year life span of Bitcoin has therefore seen it remain both the largest cryptocurrency as well as fend off multiple concerted efforts to undermine it. 

Bitcoin has proven itself via this method as well as the alternative cryptocurrencies failing to demonstrate that they can gain the Bitcoin status and popularity as Ammous and various others often explain. 

Supporting that the theory in the long-term, security and market prowess will only increase is the miners’ preference for BTC. Remaining in a broad uptrend, Bitcoin’s technical fundamentals are a result of miners dedicating more and more resources to the network. This is exactly what is happening now in the Bitcoin scenario.