Topic: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’ - page 47. (Read 14637 times)

Good point to emphasize, fillippone.

We surely have some Orwellian double-speak shit going on in recent times, and in the USA, when credit cards first came out, there were some rules that businesses could not refuse to accept physical cash.   And, sure I cannot remember the details, exactly there were also rulings about the fungibility of cash, in that businesses and the government would NOT be able to black list certain bill serial numbers - and a lot of the fungibility issues and even the forcing of businesses to take cash seem to have gone out the window due to the exaggeration of a virus.

I am not even trying to suggest that the virus is not real.. just that there seems to be a lot of convenient war upon physical cash.. and sure bitcoin is meant to be a kind of substitute for physical cash, and surely bitcoin HODLers are going to continue to find challenges in terms of challenges to fungibility...which therefore could end up affecting value  if vendors have some kind of requirement to ensure the purity of the bitcoins that they are accepting.

Of course, if bitcoins are not endorsed by governments, then they have rights to treat bitcoin differently from their own government payment systems - which is likely to continue to be an ongoing challenge for bitcoin in the coming years... probably 10-20 years or longer---- who knows how a lot of this plays out, even though options are continuing to be built that could cause security through obscurity, but still both parties in the peer to peer transaction do need to feel ready, willing and able to transact and surely the more that KYC/AML is ascribed to parties then the more uncomfortable they become - and surely seems to be more of an issue the higher the amount of value - and even governments seem to want to get into the business of private transactions for increasingly lower and lower amounts.. even a $10k threshold that has been around since about the early 70s through the bank secrecy act  hardly means anything as it did nearly 50 years ago... that value has been inflated away to cause government interference into way lower thresholds, that $10k in 1970 would be worth about $67k today.. but the government still wants to know more and more and more by NOT adjusting the threshold based on inflation.   

What a profit, where this money coming from? MicroStrategy CEO personally holding $240 million worth of bitcoin. He has bought the bitcoin at an average price close to $10000 spending $175 million. Now he has made a net profit of more than $60 million. This has been a long term process because he has been buying bitcoin for a long and the news has been revealed to the outer world recently. Possibly this profiting itself attracts more similar profiled persons invest on bitcoin.

Wait.
I know what you meant in the above sentence, but that sent me a shiver down the spine.

There is a big difference between electronic payments and bitcoin.
Bitcoin is digital cash, something you cannot forget on the XII whitepaper anniversary:(Bitcoin: A Peer-to-Peer Electronic Cash System).
Cash means anonymous, peer-to-peer mean of payment:



Other digital payments, from Credit Cards to the hypothetical CBDC are not peer to peer, that is not cash. All those payments involve a third party, who exactly knows how, when and how much you spent your (their) money.

So, please, don't mix bitcoin with Orwellian surveillance systems. Bitcoin is digital cash, as opposed to physical cash.

I was literally reading the article, and adding  to the thread, when you posted.

As you said, not only the investment was important to keep the company afloat resorting to hard money, but also proved as an exceptional marketing stunt. Full page on the WSJ is something I can't figure out how could have been attained by MicroStrategy (without another Michael Saylor Fraud, of course).

Anyway I inserted this article, together with some other interesting finding surfaced on the thread, to the OP.

You certainly can't deny his balls deepness. I wonder what a private poll of all of Microstrategy's staff and investors would come up with if asked how they felt about it.

We may find out he's been detained against his will when he attends every board meeting wearing a UASF baseball cap and forms a mob attacking nocoiners.

Wow apparently Micheal Saylor is a real Bitcoin Bull!!


https://twitter.com/michael_saylor/status/1321422012380753921?s=20


That was a 175,250,000 USD investment, already up (considering 13,200 BTC USD@13,200) 34% and worth 234,000,000 USD!
While reading this tweet anyway remember he hodl also the 75% of voting rights in Microstrategy. So, yes he aut-informed his firm about his hodlings and then auto voted the buy.

Guessing how this tweet will age...

Like from what I have said in the past firms jumping in the Bitcoin train is a double-edged sword, for one it can really attract a lot of attention for other people to follow and invest in Bitcoin as well as it will give Bitcoin a recognition to the investing community the downside of this is of course a company this big which as of now has 250 million dollars in Bitcoin and is reportedly still buying is considered to be a whale and a capital this big can bring the market down once they hit the sell button. Remember that they have this as an alternative for their cash reserve and cash reserves are meant to be liquidated so anytime the company sees it fit they can always sell all of it at once.

It's nice to see more wholesale investment in Bitcoin and it is bound to be good for the long term price, however they are effectively taking a gamble on this like everyone else. Hopefully more companies diversify their assets into Bitcoin, now it has the support of Paypal it seems much easier for the general population to get hold of it and store it securely. People love chasing the next big thing and it looks like Bitcoin is back in favor.

How much a Bitcoin Company Microstrategy is?
Well: it seems a lot!
According to the spreadsheet we are at 30%.



 
But this tweet puts it on a different perspective:



https://twitter.com/kerooke/status/1321137199585394695?s=20

Of course they are happy about this, and they are going to try the trick again:

MicroStrategy Is Looking to Buy More Bitcoin, President Says

Of course the reputation of the company is very high, but I see a very high correlation with price.
This means they must be ready to see some volatility there.

Agree. Researching for my Bitcoin treasuries thread I saw some few companies reporting Bitcoin Holding just for the sake of it.
Is a 100 BTC reserve worth making the world aware of? Certainly, as it is a very effective marketing stunt.
Is a 100 BTC reserve worth tracking? I don’t think so.

So pinch of salt when reading those announcements.

https://www.coindesk.com/uk-listed-firm-mode-putting-10-of-cash-reserves-into-bitcoin

Mode Global Holdings PLC, a UK fintech company, has stuck 10% of their cashola in. No mention of figures so 10% might be £100. They're citing lack of returns on cash as a major factor. They did an IPO a couple of weeks ago so maybe want to keep the greed rolling longer.

I think at this point he's mainly enjoying being feted by a new group of people. Expect him to open his novelty t shirt and mug store any second now to extend his honeymoon. The real test is when it falls through the floor. It may of course end its fall at a price that's way higher than where it is now.

In fact, it is a total of $425 million that MicroStrategy invested in the purchase of BTC, and the first transaction was $250 million. There is no doubt that such large companies influence others by their example, and every week we have at least one new company that publicly announces that it has bought thousands of BTC. It will be interesting to see how the situation develops in the coming months, whether the trend will continue in the sense that other companies will want some of the digital gold for themselves.

No doubt this is a huge news for the crypto community. Like I used to say, it is only a matter of time before bitcoin gets wholly adopted in the mainstream world.
I read some days ago that Square, another company, bought bitcoins worth $50 million and just a few days later, this is also coming through.
I believe that for a company to pump $250 million into bitcoin, it shows the tangibility of bitcoin and it's advantages over fiat.
Trust me, at this rate, in some two or three years, bitcoin's adoption would be almost throughout the entire world

Yes, JJG! Excellent podcast. I still can't believe this is happening for real. My take is that every sane individual, after having put a bit of time, passion and dedication into bitcoin, can not dismiss it as nerd money. This is the most important technological breakthrough of our lives and, listening to the podcast, I am actually so proud of myself having spent all that time studying bitcoin while everyone around me kept telling me to stop wasting my time.
I went a bit long but the option of funding bitcoin developers reminds me of what is happening to Linux. You still have free, open source Linux distros and applications while big enterprises are making big money thanks to it.

Today, Peter Mccormack posted a 1 hour 43 minute Podcast (What Bitcoin Did) interview with Saylor, in which (at about minute 25) Mccormack asked Saylor what he thought about funding bitcoin development, and Saylor seemed convinced that funding a developer would be a good idea... so during such interview, Saylor seemed to have decided during that his company would be funding a bitcoin developer in the near future... a good interview overall.. with a bit of breaking news, at the same time.    

https://www.coindesk.com/nydig-raises-50-million

Stone Ridge Holdings Group, whoever the hell they are, has 10,000 BTC that they're referring to as their 'primary treasury reserve asset'.

I wonder how many there are yet to out themselves.

Microstrategy added a whole page on their Corporate Website, dedicated to Bitcoin and their investment thesis:

https://www.microstrategy.com/en/bitcoin

It's packed with interviews, papers articles and other documents on their investment and on bitcoin in general.

Definitely worth a read, if you want to consider the reasons why they decided to walk that way.

https://twitter.com/SquareIR/status/1314190152663617536#

Square have just put 1.8% of their cash into BTC too. One of the less surprising ones of course but still, 50 million dollars thrown at it isn't to be sniffed at.

I can say with great certainty that the video was created in 2014 because there was one upload of the same video that year, but it was deleted over time. Draper made an identical statement that was released on September 12, 2014.


Draper actually lend some of that BTC to start-up Vaurum after the auction, but I haven't been able to find out exactly what the amounts are - so it's unclear how much Draper kept and how much he invested. Although in the years after that purchase (as well as today) he was of the opinion that he did not want to sell BTC because he considered it something much better than fiat currency.