Monday, July 22, 2024

MicroStrategy Bitcoin purchase divides the crypto community

Software analytics company MicroStrategy recently added more Bitcoin (BTC) to the firm’s holdings. Members of the crypto community had mixed reactions to the move. 

In a recent tweet, MicroStrategy’s executive chairman Michael Saylor announced that the firm had made another Bitcoin purchase. The move puts the firm’s total BTC holdings at 132,500 BTC, purchased for a total of $4.03 billion but worth only around $2.1 billion at the time of writing. Many commended the move, while some brought up some potential negative effects.

A community member praised the MicroStrategy chairman, calling him a “rock star” whose mission is to bank the unbanked. Others celebrated the new development by pledging that they would join in and buy more Bitcoin themselves.

However, not everyone is overly enthusiastic about the company’s crypto shopping. Some think this new action could potentially spark a new bottom price for the top digital asset.

In a back-and-forth conversation on Twitter, Bitcoin analysts Willy Woo and Dan Held shared their thoughts on MicroStrategy’s purchase. According to Woo, Bitcoiners should not be happy when the company adds more BTC to its holdings. The analyst argued that MicroStrategy accumulating more Bitcoin poses risks of centralization because the company’s decision-making is centralized. In addition, Woo suggested that it’s better to celebrate adoption by ordinary people.

In a counter-argument, Held said there would be no risks of centralization because ownership does not equate to network control. The analyst highlighted that there’s no way to control who buys Bitcoin and that people or firms can buy as much BTC as they want.

Related: Wife of Hal Finney announces Bitcoin charity event

Meanwhile, Saylor recently announced the company’s plans to provide Lightning Network solutions next year. The executive said that the company is already looking into software and solutions that utilize the Lightning Network.

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