The prices of Bitcoin and other cryptocurrencies tumbled yesterday as the CEO of Tesla, Elon Musk, announced that Tesla would stop accepting Bitcoin. This was due to the environmental concern cited by Elon Musk. Though the claims seem to be unjustified, it led to a serious buying opportunity for many investors as prices of BTC fell to a low of $45k and settled around $49k for quite some time. And Microstrategy that often buys Bitcoin during dips was one of them.
The Bitcoin purchase
Even though Bitcoin went on a sale yesterday, Michael Saylor purchased BTC for quite a lot more. It was selling for $55,387 when Microstrategy added another $15 million worth of BTC on its balance sheet. But after that, the price of Bitcoin went even lower and is currently trading at around $50k. Microstrategy has been one of the few companies that have shown unshaken faith in Bitcoin. And this means that they know it is unlikely that there will be a complete crash of the coin.
Microstrategy has been doing $15 million worth of Bitcoin purchases almost every month and buys even more than 1 time in a month. They aim at converting 100% of their balance sheets to Bitcoin. Its CEO Michael Saylor has also been one of the unofficial advocates of Bitcoin. Time and again, he has spoken heavily in favor of the currency and also made sure that all kinds of myths surrounding it are debunked. And this includes the carbon footprint myth.
Michael’s reaction to Elon’s Tweet
Michael Saylor has also talked about the tweet that Elon Musk made about not accepting BTC. He said that this is a myth that has been debunked again and again. In fact, the energy usage of Bitcoin is very little as compared to other industries and also a small fraction of the energy that is generally wasted. He also said that Bitcoin gives the 8 billion people of the world hope to live a decent life amidst the failing economy and rising inflation. So, it is not negotiable that we embrace such an asset.
The US inflation rate is at an all-time high, and it is rumored that further release of dollars in the market could push the rates even higher. In this pandemic, the pace at which the value of the dollar is dropping is more than the pace at which people are losing lives. And the government is doing nothing to stop this. So, yeah, ultimately, it comes down to the fact that what the public does to preserve the value of their money.
What do you think about Microstrategy buying so much Bitcoin? And do you think this is a good idea in the long run? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.