Michael Saylor’s strategy is “synthetically with half bitcoin” (BTC) by buying half or more from the newly created supply of minors each month, according to Adam Livingston, BTC analyst and author of “The Bitcoin Age and the Great Harvest”.
Livingston said miners are currently producing around 450 BTC per day or around 13,500 BTC per month, but that the strategy has acquired 379,800 BTC in the last six months. This results in the company buying approximately 2,087 BTC per day – far beyond the daily production of minor. The author added:
“When Bitcoin becomes also rare, access to bitcoin will require a premium payment. Loans against bitcoin will cost more. Bitcoin will become a luxury company reserved for nation states and business whales, and the strategy will control the bottleneck.”
“The global cost of BTC capital will no longer be set by” the market “. It will be established by the gravitational policies of the first Bitcoin superpower: strategy, “Livingston continued.
The prediction by the author of a Bitcoin supply crisis results in much higher prices of the BTC if the strategy can continue its RCTC acquisitions of BTC while market demand for digital assets supported by the offer increases among institutional and detail investors.
In relation: Michael Saylor alludes to the purchase of bitcoin while the whales stack aggressively
Institutions such as the strategy lead the world to hyperbitbolization
CEO of Cypherepunk and Blockstream, Adam Back, predicted that the strategy and other institutions that have adopted a Bitcoin corporate cash plan will make BTC market capitalization at 200 billions of dollars.
“The strategy and the other cash companies are an arbitration of the dislocation between the future of Bitcoin and the Fiat world of today,” Back wrote in a post of April 26.
Critics of the company warn that the debt approach to BTC acquisition could flow financially if a prolonged BTC bears market takes effect and also warns greater systemic risks for the BTC from such a high concentration of the digital currency held by a single entity.
However, Bitcoin Advocate and author Saifdean Ammous recently declared that the concentration of BTC by the strategy does not threaten the protocol.
Ammous argued that institutions like Blackrock and a strategy holding high BTC concentrations could not design a hard fork increasing the maximum offer of Bitcoin, because it would massively devalue their assets, which, at the end of the day, would belong to the shareholders with the power to yield.
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