it really does seem like Microstrategy's aim is to create BTC scarcity. it makes sense, and the ramifications are a little scary....
i'm politely ignoring CUB for now, as i cannot enter. it is a cute little lion, playing with all its new friends. have fun, little CUB!
enjoy, lordneroo!
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I don't think that's his plan. I think he just sees it as at least a 10-15x from here vs his "cash" losing 25-50% of its value over the next couple years. Kind of a no-brainer when you look at it that way. He has always said that they're going to "sweep" their cash into Bitcoin each month. So whatever they pull in from the software business, they turn around and use to buy bitcoin. I expect you'll see these announcements every month for quite a while. At least until the bull run ends. And maybe even after that in preperation for the next one.
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that makes sense, but then it's also creating scarcity, and that seems intentional. the more investment into BTC, the more necessity for it to remain at an elevated price point, until it makes more sense for Microstrategy to convert back to fiat...
their buying (institutional buying in general) and holding is creating the "store of value", by fiat if you will. the only way to maintain that value is to keep buying or to never sell, but they are not in the market to use a crippled payment method instead of USD, so they sell eventually, and we crash, and people hate crypto and say we are frauds.
holding BTC as a hedge makes it deflationary, but it also limits its value, except as viewed by others interested in it speculatively. it becomes less and less connected to real value, and sort of mimics all the traditional asset systems financial types know and love.
gold you can use for so many other things. BTC sitting in an address is burning resources. i won't speak on shorting loaned assets.
so i understand the strategy involved, but i do not like it, i think it's damaging to crypto, even if it can benefit me in the process.
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I hear what you're saying but I still don't buy it. You gotta realize that when and if bitcoin hits $250,000 during this halving cycle, that will mean that $225M worth of newly minted bitcoin will be coming into circulation EVERY DAY. His $92M or whatever won't even eat up one days supply. The market is getting too big for individual actors to manipulate it too much. There's going to still be a lot of volatility for a few years yet but I don't think any one actor can create scarcity. Besides, "scarcity" is just basic supply and demand. It's how any market works. If more people want to buy than there are sellers than the price has to go up until the buyers and sellers equal out.
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yeah, it's never one actor or corporation that will induce the sort of scarcity i was talking about. i guess i wasn't even thinking that way really, but more Microstrategy as an example of a trend that has worrying repercussions. sorry i lost the thread a bit there.
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Thanks mate, hope you get the chance to enter the fray. Have a good one!
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2m Bitcoin guys.
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