Michael Saylor’s Strategy is “synthetically halving Bitcoin” (BTCAdam Livingston, BTC analyst, and author of “The Bitcoin Age and The Great Harvest.”
Livingston said Strategy has acquired over 379,800 BTC during the past six months. Miners produce approximately 450 BTC a day, or 13,500 BTC a month. It is estimated that the company has acquired 379,800 BTC in the last six months. purchasing roughly 2,087 BTC per day — far in excess of daily miner output. Author added:
“When Bitcoin becomes this scarce, access to Bitcoin will require paying a premium. Lending against Bitcoin will cost more. Borrowing Bitcoin will become a luxury business reserved for nation-states and corporate whales, and Strategy will control the bottleneck.”
“BTC’s global cost of capital will no longer be set by ‘the market.’ It will be set by the gravitational policies of the first Bitcoin superpower: Strategy,” Livingston continues.
Author’s predictions of the a Bitcoin supply crunch Strategy’s acquisition of BTC will result in much higher BTC price if the demand among retail and institutional investors increases for the digital asset with limited supply.
Related: Michael Saylor hints at Bitcoin purchase as whales stack aggressively
The world is moving towards hyperbitcoinization thanks to institutions such as Strategy
Adam Back, CEO of Cypherpunk/Blockstream and Blockstream predicted that institutions like Strategy that had adopted the a Bitcoin corporate treasury plan The upcoming year will be a time of change. market capitalization of BTC to $200 trillion.
“Strategy and other treasury companies are an arbitrage of the dislocation between the Bitcoin future and today’s fiat world,” Back in a 26 April X post.
BTC critics warn of debt-based acquisition methods could sink Strategy Financially if an extended BTC bear-market takes place and warns of increased systemic risks for BTC due to such a concentration of digital currency by one entity.
Recently, Bitcoin author and advocate Saifedean Ammous said that Strategy BTC’s concentration is a concern. doesn’t threaten the protocol.
Ammous claimed that BlackRock, Strategy, and other institutions with high BTC concentrations could not implement a hard-fork to increase Bitcoin’s supply because it would devalue the holdings which ultimately belong to the shareholders who have the right to sell.
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Source: cointelegraph.com
