Why is MicroStrategy buying bitcoin?
MicroStrategy is purchasing Bitcoin as the company's reserve asset because they believe Bitcoin is a long-term store of value and an anti-inflation asset, according to the company's CEO, Michael Saylor. Here are some of the main reasons supporting MicroStrategy's Bitcoin acquisition:
Anti-Inflation Asset: MicroStrategy is concerned that the value of traditional currencies may decrease over time, so they invest in a fixed-supply asset like Bitcoin.
It is thought that Bitcoin can provide protection against inflation since it has a limited supply of 21 million units.
Low Interest Rates: Low interest rates of central banks reduce the returns of traditional asset classes. Therefore, companies are looking for alternative investment vehicles, and digital assets such as Bitcoin become attractive in this context.
Bitcoin as a Store of Value: MicroStrategy views Bitcoin as a store of value and holds this digital asset as part of the company's reserve assets. This allows the company to diversify its balance sheet and potentially benefit from long-term value increases.
Future Potential: Companies like MicroStrategy believe that Bitcoin will gain wider acceptance and increase in value in the future. Therefore, they want to capture potential future returns by investing in Bitcoin at an early stage.
The main philosophy behind MicroStrategy's acquisition of Bitcoin as a reserve asset is to recognize and capitalize on the potential of Bitcoin as a valuable asset in line with the company's long-term financial strategies.
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