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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

#81

Post by mrfredward »

mac01021 wrote: post #34
diegocerdan wrote: post #15

Earlier quoted context omitted.

No inflation? Look what new money has bought and you will clearly see huge inflation: stocks and housing. We don't see shopping cart inflation because it's countered by the technological cheapening of the production. And the key fact that new money is not being given to people buying groceries.

I never understood how anyone can find it remotely fair for the Fed to introduce new money into the economy by any means other than equal division between all citizens.

The Fed just buys debt...the closest thing to giving away money they can do is nudge someone's interest rates lower or make a loan easier to get.

Congress decides how the money is distributed when they're spending it.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#82

Post by lawlessone »

sonicggg wrote: post #18

I feel conflicted by this expectation from people that bitcoin will continually grow ad eternum, just because the supply is limited. I'm a believer on cryptocurrencies, but bitcoin being a first generation project, still has several pitfalls, such as transaction throughput, slowly trying to be addressed by other projects. What happens when people start flocking to ethereum, cardano, eos, or something else? Will it re…

"What happens when people start flocking to ethereum,"

might be an issue with it's completely unverified supply. Eth might work as currency of sorts but not as an asset to hold.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#83

Post by bhaak »

f00zz wrote: post #70
bhaak wrote: post #28

Earlier quoted context omitted.

I can totally believe how Bitcoin, Ethereum and the rest of the cryptocurrency space could go through another bubble (the last one was quite small if you compare it to the DotCom bubble and consider how much money is floating around nowadays). So I can imagine that this will turn into a big profit for them but the arguments are hilariously weak. Granted they will get a lot of PR out of it.

> go through another bubble I don't know. I remember a few years ago when people on reddit would get excited when some cafe in Bratislava or wherever started accepting bitcoin, or when Steam started accepting bitcoin. Now cryptocurrencies seem... boring. I see lots of people talking about "store of value", but actual use of bitcoin for what it was intended seems to be decreasing. And now people who want to gamble can…

Don't look at Bitcoin. That hasn't changed much and not much interesting stuff (besides some drama) goes on there.

Look at the Ethereum space. That's where most of the action is these days. DeFi (Decentralized Finance) is the current hype. The ETH2 phase 0 is projected to go live later this year (this time for real :-). 60% of Tether is an ERC20 token now. etc.

Oh, and if you are interested in drama and have missed it, look up the Quadriga story. That story is so unbelievable whacky, no screen writer would have been able to come up with it.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#84

Post by seibelj »

jcfrei wrote: post #76
seibelj wrote: post #55

Decentralized Finance (DeFi) is the green shoots of a new and innovative financial system. It will break, it will be hacked, but longterm I believe this is the direction of finance - borderless, global, instant, peer to peer. Artificial barriers / borders / regulations simply don't matter when the mechanism for such transfers and investment are unstoppable and permission-less. Look at Compound Finance - $2 billion+ i…

I am also optimistic about the long-term value created by DeFi and the new business models it will allow. But for now I think the sole reason it exists is because people use it to get leverage for speculation.

A lot of modern finance fulfills that need. Give it time, and it will also be used for productive capital formation in a bigger way.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#86

Post by hyko »

solotronics wrote: post #46
hyko wrote: post #11

It’s so crazy that it might just be completely crazy. Behaviour that is grounds for an investigation by shareholders. In a world where the governments can’t support their own currencies, nobody will give a shit about Bitcoin. “I don’t trust the real hospitals because of medical negligence, better get my amputation done by that guy operating out of his garage just to be safe.”

BTC is fully accountable while it's issuance is not in the hands of any certain group. Therefore it has a permanently predictable rate of inflation that is much lower than fiat currencies at the moment. Nobody has to trust anyone, that's the whole point of bitcoin.

Except you have to trust lots of people for Bitcoin to work, from DNS record holders to developers to intermediaries and beyond. The whole system is dripping with trust, so why not just use standard currencies?

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#87

Post by maps7 »

bhaak wrote: post #83
f00zz wrote: post #70

Earlier quoted context omitted.

> go through another bubble I don't know. I remember a few years ago when people on reddit would get excited when some cafe in Bratislava or wherever started accepting bitcoin, or when Steam started accepting bitcoin. Now cryptocurrencies seem... boring. I see lots of people talking about "store of value", but actual use of bitcoin for what it was intended seems to be decreasing. And now people who want to gamble can…

Don't look at Bitcoin. That hasn't changed much and not much interesting stuff (besides some drama) goes on there. Look at the Ethereum space. That's where most of the action is these days. DeFi (Decentralized Finance) is the current hype. The ETH2 phase 0 is projected to go live later this year (this time for real :-). 60% of Tether is an ERC20 token now. etc. Oh, and if you are interested in drama and have missed i…

What is ETH2 and why should I care about it?

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#88

Post by beaner »

bhaak wrote: post #83
f00zz wrote: post #70

Earlier quoted context omitted.

> go through another bubble I don't know. I remember a few years ago when people on reddit would get excited when some cafe in Bratislava or wherever started accepting bitcoin, or when Steam started accepting bitcoin. Now cryptocurrencies seem... boring. I see lots of people talking about "store of value", but actual use of bitcoin for what it was intended seems to be decreasing. And now people who want to gamble can…

Don't look at Bitcoin. That hasn't changed much and not much interesting stuff (besides some drama) goes on there. Look at the Ethereum space. That's where most of the action is these days. DeFi (Decentralized Finance) is the current hype. The ETH2 phase 0 is projected to go live later this year (this time for real :-). 60% of Tether is an ERC20 token now. etc. Oh, and if you are interested in drama and have missed i…

IMO, "boring" is exactly what Bitcoin should be right now. It's becoming normal.

Ethereum does have a lot of really interesting things going on that are super cool. But I wouldn't take this to mean that Bitcoin isn't developing or that it has somehow become stodgy or less relevant.

Bitcoin's developments are more the field of payments, decentralization, and privacy. These parts are not flashy, but are absolutely fundamental for its usability as money and store-of-value in the future.

The biggest differentiation though is that Bitcoin has an explicit inflation rate while Ethereum actually has no specific monetary policy at all. It is up to the devs and its scarcity could be undermined.

They're both extremely interesting for different reasons, but for those of us who got into crypto through economic reasoning about the gold standard, scarcity, government control of the money supply, etc. - the things many have seen for a really long time as the problems at hand - Bitcoin is by far more directly addressing them.

It's "boringness" at the moment means these objectives and economic motivations are becoming more agreeable.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#89

Post by martinko »

CryptoPunk wrote: post #80

AFAICS, Bitcoin has a deeply flawed long-term security model. Its block reward, which constitutes a subsidy for its security budget, halves every four years. Unless the halving of the security subsidy is made up for by additional transaction fees, Bitcoin's security decreases. Given that Bitcoin blocks are full - with only a little space left for further optimizations via SegWit adoption and Schnorr signatures - tran…

Bitcoin's security does not need to keep going up indefinitely. It will reach an equilibrium where tx fees will be paying for the entire security of the network. As the block size is capped, there will be a market for fees.

Hard-forking to remove the block size limit would have profound consequences for the decentralized nature of bitcoin - arguably its most important characteristic.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#90

Post by [deleted] »

diegocerdan wrote: post #15
ausbah wrote: post #7

Earlier quoted context omitted.

wasn't quanatative easing done for like a decade after tbe recession with no inflation? why is there any reason to think this time around will be different? scale?

No inflation? Look what new money has bought and you will clearly see huge inflation: stocks and housing. We don't see shopping cart inflation because it's countered by the technological cheapening of the production. And the key fact that new money is not being given to people buying groceries.

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