NASDAQ-listed business intelligence company MicroStrategy founder Michael Saylor has stated that Bitcoin “scales just fine as a store of value”. He made the remarks through his Twitter account after the company acquired an additional 21,454 BTC (~$234.6 million).
The acquisition was through 78,388 off-chain transactions. According to Saylor, the Bitcoin is under a cold storage with 18 on-chain transactions.
By September 14th, 2020, MicroStrategy purchased 16,796 additional bitcoins at an aggregate purchase price of $175 million. The company’s total Bitcoin now has a total aggregate purchase price of over $425 million.
“There’s something like $200T worth of debt and treasury instruments that have a negative real yield and the only debate is how negative it is. Bitcoin is the only thing I could find that is positive.”
Excerpts from the podcast compiled by Christopher Gimmer shows that Saylor is of the opinion that Bitcoin is already in a dominant position with no turning back. He added that:
“There’s never an example of a $100B monster digital network that was vanquished once it got to that dominant position. All you gotta do is see that chart and think about the dynamic and the network effect. [Bitcoin] has already won.”
The significant acquisition which is part of MicroStrategy’s ‘Bitcoin Standard’ firmly cements the company’s Bitcoin Whale status. According to Saylor, other companies will follow suit and usher in Central Banks.
On-chain status quo to remain rare
In his tweet, Saylor was of the opinion that a status quo where on-chain transactions for major investors will remain rare. According to Saylor:
“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.”
Normally, off-chain transactions through platforms like the Lightning Network enable Bitcoin transaction volume to increase. At the same time, it does not add volume to the blockchain and raising fees benefitting miners.
During the interview with Pompletter.com, Saylor stressed on his trust in the technical fundamentals of the network and its future. Due to off-chain transactions, MicroStrategy will not undergo the scaling problem to meet demand.
The purchase comes following two months of transforming MicroStrategy from a cash surplus company into a million-dollar company betting on bitcoin. The strategy comes following a change in Saylor’s mindset after dismissing Bitcoin back in 2013.
Listen to the full eposide here: