Michael Saylor plans to destroy his Bitcoin after death—Following in Satoshi Nakamoto's footsteps?

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Michael Saylor recently stated that he plans to destroy his Bitcoin keys after his death, a move that could have profound implications for the Bitcoin ecosystem. He believes that this act could permanently reduce the number of Bitcoins in circulation, thereby enhancing its scarcity and long-term value. He described the destruction of the keys as a "proportional contribution to other Bitcoin holders."

Why can key destruction enhance Bitcoin value?

Enhanced Scarcity

The supply of Bitcoin is fixed at 21 million coins, and lost Bitcoins further reduce the available quantity, making the remaining Bitcoins more precious.

Raising the Market Floor Price

Permanently lost Bitcoins reduce the circulating supply, raising the market floor price and enhancing the value of the Bitcoins held by investors.

Imitating Satoshi Nakamoto's "Sleeping Assets"

Satoshi Nakamoto, the founder of Bitcoin, holds about 1 million BTC in a wallet that has never moved since the early days of the network. Long-term inactive Bitcoins are also seen as a "contribution" to scarcity.

Saylor currently holds over 17,700 Bitcoins, valued at over $1.7 billion. He plans to destroy the keys after his life ends, ensuring that these Bitcoins will never circulate again, which will enhance value for other holders and leave a unique "scarcity legacy" for the Bitcoin network.

Although this approach enhances long-term value, it may spark debates over liquidity and fairness. In any case, Saylor's vision demonstrates his belief in Bitcoin: Bitcoin is not just an asset, but an evolving value network.

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