Michael Saylor, CEO of MicroStrategy has opined that Bitcoin (BTC) as a store of value “scales just fine.” It can be remembered that the company recently purchased 38,250 BTC.
Through a tweet, Saylor disclosed additional info regarding the company’s unexpected investment in Bitcoin.
MicroStrategy, which is regularly garnering media attention from the time it invested in Bitcoin in August, has now invested $400 million of surplus funds in BTC.
We acquired 21,454 BTC via 78,388 off-chain transactions, then secured it in cold storage with 18 on-chain transactions. #Bitcoin scales just fine as a store of value.
— Michael Saylor (@michael_saylor) September 17, 2020
In an interview with Morgan Creek Digital co-founder Anthony Pompliano, Saylor emphasized his commitment in Bitcoin. Notably, Saylog had been extremely cynical about Bitcoin years before.
Nevertheless, his trust in the fundamentals and technical aspects of the network and its growth prospects is a given thing. The issue of scaling to match demand, for example, is not a concern for Saylor, considering the off-chain transaction possibilities.
MicroStrategy has highlighted that technical advancement while purchasing 21,454 Bitcoin for $250 a month before.
Saylor wrote “We acquired 21,454 BTC via 78,388 off-chain transactions, then secured it in cold storage with 18 on-chain transactions.”
“#Bitcoin scales just fine as a store of value.”
Saylor further stated that a quo ante where transactions are conducted on-chain for a majority of investors will remain an anomaly.
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.
— Michael Saylor (@michael_saylor) September 17, 2020
Off-chain dealings through facilities such as the Lightning Network permit Bitcoin transaction volume to rise without putting stress on blockchain and avoid a hike in charges to convince miners. In his famed book titled “The Bitcoin Standard,” Saifedean Ammous similarly contends that off-chain activity will turn out to be the paradigm once Bitcoin sees an increase in adoption.
Such a scenario is likely to happen soon. Following the interview by Pompliano, statistician Will Woo highlighted Saylor’s statement stating that the world’s 35,000 publicly listed firms hold cash surplus of $5 trillion.
Some takeaways from @APompliano's interview with @michael_saylor, CEO of MicroStrategy, after their 38,250 BTC buy ($425m).
Plot goes: "I'm a good thinker and a large financial player, this what I found researching Bitcoin coming from outside of the industry"
Read on…
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— Willy Woo (@woonomic) September 18, 2020
He tweeted “I make out if others follow MicroStrategy’s lead and even just 1% of that capital finds its way into BTC, that’s enough to blow Bitcoin cap to $2T.”
Pointing to time period of six months taken by MicroStrategy to authorize switchover to Bitcoin, Woo stated that similar moves could begin next year.
