MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

Post by martinko » Tue, Aug 11, 2020, 3:28 PM UTC

hyko wrote: post #86

solotronics wrote: post #46

Earlier quoted context omitted.

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?

Post by martinko » Tue, Aug 11, 2020, 3:29 PM UTC

9nGQluzmnq3M wrote: post #52

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.

"Could"? We're already in a bubble. Most notably, the Bitcoin price rally coincides with Tether printing out $10B of their "stablecoin", fully backed with what very much appears to be nothing at all. Here's a primer from HN's very own patio11, from back in late 2019 when they had only printed $4B: https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/

Post by [deleted] » Tue, Aug 11, 2020, 3:31 PM UTC

briandw wrote: post #75

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…

It’s not the Bitcoin will continue to rise, it’s that the dollar will continue to fall. All currencies eventually become worthless.

Post by cortesoft » Tue, Aug 11, 2020, 3:33 PM UTC

drcode wrote: post #77

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…

The counterargument to this is that IF people are willing to pay for something, they must care about it. For both Bitcoin and Ethereum, the amount of money people are willing to pay in fees to propagate on the network are extremely high at the moment... so in theory at least, somebody thinks these networks are "worth" using, or they wouldn't spend this money.

Post by nickbauman » Tue, Aug 11, 2020, 3:39 PM UTC

bhaak wrote: post #28

cs702 wrote: post #2

"[We] spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public…

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.