By Contributing Author
If you told someone in 2009 when Bitcoin just got released that there will come a day when the world’s largest publicly-traded business intelligence company will swap fiat for Bitcoin as its treasury reserve asset, they would never believe you. The business intelligence software firm MicroStrategy Inc. has purchased 21,454 Bitcoins for $250 million, the company said on Tuesday.
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CEO Michael J. Saylor calls Bitcoin “Superior to cash”
The CEO of Microstrategy Michael J. Saylor has said that Bitcoin is an asset with more long-term appreciation potential than holding cash.
“This investment reflects our belief that bitcoin, as the world’s most widely adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” he noted.
Saylor didn’t hesitate to go further endorsing Bitcoin.
“MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy,” he added.
Further, he stressed that there are factors out there that are weakening fiat currencies such as COVID-19, political and economic uncertainty, and also the technical and qualitative aspects that, according to him, give the bitcoin blockchain power.
Financial experts and crypto enthusiasts expect other companies to make a similar move
As much as it was surprising news, it was also exciting for cryptocurrency enthusiasts and bitcoiners who went into a tweeting rampage. Many of them saw this as the beginning of the real competition that Bitcoin will make to fiat currencies.
The news didn’t go unnoticed by the famous Youtuber and cryptocurrency expert Ivan On Tech who tweeted:
“Multi-national, multi-billion public companies are now investing in Bitcoin. Bitcoin is ‘Primary Treasury Reserve Asset.'”
The podcast host Peter McCormack considered that Microstrategy has made a strategic move.
“MicroStrategy bought 0.1% of the Bitcoin supply. Very few companies will be able to copy this strategy,” he tweeted.
Furthermore, Jason Yanowitz, founder of financial media network BlockWorks Group noted that this move might spark other companies to make a similar move.
“A public company just bought $250M in Bitcoin as part of their capital allocation strategy. MicroStrategy’s CEO said they bought Bitcoin to avoid inflation. Eventually, every public company will do the same.”, he tweeted.
The well known financial commentator Preston Pysh in response to the news said that Microstrategy adopting Bitcoin as a primary treasury reserve asset marks just the beginning of the new era that is coming.
“As I suggested 6 months ago, we are now starting to see businesses owning Bitcoin as a marketable security on their balance sheet. MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset. Just. Getting. Started.”, he said.
Bitcoin remains the preferred cryptocurrency
The CEO of Microstrategy Michael J. Saylor didn’t hesitate to compliment Bitcoin further and did not even mention that they had considered any other cryptocurrencies.
“We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value,” he noted.
Moreover, Bitcoin’s eleven-year journey has inevitably seen it both remain the King of cryptocurrencies and eliminate repetitious attempts to weaken it.
Many became millionaires trading cryptocurrencies. Moreover, seeing that a company as big as Microfinance has decided to swap fiat for Bitcoin as its treasury reserve asset, there is no single reason to doubt Bitcoin’s path. Based on what experts and cryptocurrency enthusiasts say, we see that this is just the beginning of the massive Bitcoin expansion, as many other companies will make similar decisions like Microfinance.