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MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

ir.microstrategy.com

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Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#171

Post by beaner »

CryptoPunk wrote: post #169
beaner wrote: post #146

Earlier quoted context omitted.

Because it won't be expensive. Visa does something like $11 trillion in volume per year. Why does anybody use that if visa takes 1-2%? 1% of 11 trillion is 110 billion. With that amount of fee revenue you'd be able to secure the Bitcoin network 12,000 times over. So Bitcoin's security is able to grow by 1,000x and still cut prices relative to current popular providers by 12x. That's cheap, not expensive, and that wil…

Visa can charge those fees because are no alternatives to Visa. There are alternatives to Bitcoin. It doesn't have a network of hundreds of millions of accepting merchants spread all around the world, and never will, because it can't process a meaningful volume of transactions per second: In contrast to Visa, which can process 3,000 transactions per second, Bitcoin can only process 3 per second. Limited, even during…

Mastercard is a competitor to Visa.

2nd layers for Bitcoin can scale to many thousands of transactions per second.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#172

Post by d0gbread »

f00zz wrote: post #168
nostrademons wrote: post #166

Earlier quoted context omitted.

I think a store of value is exactly what MicroStrategy (and other large institutional buyers of crypto) are looking for right now. If it gets to the point where people will be calling on their Bitcoin reserves, the IRS will no longer be a going concern, at least one that anyone will be paying attention to. It's insurance against the collapse of governments, and so any government regulation other than ones affecting i…

Note that places where the local currency is actually collapsing aren't seeing much cryptocurrency adoption. In Argentina people just buy USD. In Zimbabwe people were using equities in the local stock market as hedge against inflation [1]. [1] https://www.bloomberg.com/news/articles/2020-07-06/for-zimba...

Compared to what.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#173

Post by maps7 »

nostrademons wrote: post #123
maps7 wrote: post #87

Earlier quoted context omitted.

What is ETH2 and why should I care about it?

Ethereum + proof of stake + sharding. Right now every node on the Ethereum network validates every transaction using a similar proof of work system as Bitcoin. This creates a transaction bottleneck; I believe Bitcoin can do something like 7 TPS, Ethereum about 11, which is woefully inadequate for a global financial system (for comparison, I believe Visa does something like 20,000). Proof-of-stake replaces this massiv…

Sounds like a better approach. Do you think Bitcoin (BTC) will go down this path too?

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#174

Post by biggie88 »

dgudkov wrote: post #167

If a company like MicroStrategy starts investing in Bitcoin instead of reinvesting in own business it means it has no good ideas how to generate value as a company. In other words, it doesn't believe its own business can generate more revenue than Bitcoin trade. They may be genius Bitcoin traders, but clearly they are no longer Business Intelligence visionaries as they once were. A famous company that now admits it h…

Yup, and their stock price since their 2000s bubble has been completely flat.Why not innovate your way to more value then rely on a fledgling technology that has decades probably to prove itself.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#175

Post by nostrademons »

maps7 wrote: post #173
nostrademons wrote: post #123

Earlier quoted context omitted.

Ethereum + proof of stake + sharding. Right now every node on the Ethereum network validates every transaction using a similar proof of work system as Bitcoin. This creates a transaction bottleneck; I believe Bitcoin can do something like 7 TPS, Ethereum about 11, which is woefully inadequate for a global financial system (for comparison, I believe Visa does something like 20,000). Proof-of-stake replaces this massiv…

Sounds like a better approach. Do you think Bitcoin (BTC) will go down this path too?

Bitcoin has a cultural bias to being conservative. Their selling point is that they were the first cryptocurrency, the Bitcoin network has never been hacked (even if individual exchanges or wallets have), and so they are a much more stable and dependable store of value. In the past they've been quite resistant to fundamental changes in how the blockchain works.

I'm pretty excited about Ethereum precisely because they're willing to experiment and rethink everything about their approach. I do suspect that soon after ETH2 is launched we will see a high-profile hack that steals everyone's ETH and requires a complete rollback of the network.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#176

Post by parasubvert »

frank2 wrote: post #158
parasubvert wrote: post #132

Earlier quoted context omitted.

We watched one of the US political parties threaten default at least three times in the past 12 years. I think creating political/fiscal crises is part of the point.

I had no idea. Where can I learn more about this? Are you sure they threatened to default of _Treasury_ instruments?

Yes.

And while the mainstream view is that Ryan/Boehner never really intended to go through with it because they knew the consequences, a sizable contingent of congresspeople & conservative pundits wanted to go through with it just to show that "they meant business".

https://en.wikipedia.org/wiki/United_States_debt-ceiling_cri...

My perspective, when people tell you what they'll do, believe them. It would be economic equivalent to setting off a nuclear bomb in the middle of the country, but :shrug:, it would own the libs.

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