Michael Saylor

Upside Down World: Spooks are Heroes, Heroes are Spooks

Published

4 hours ago

October 21, 2024

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This space is suffering from a problem of inverted perceptions. What makes Bitcoin valuable in the first place is its decentralized nature. The fact that it is a distributed system, with no central point of control, no central point of influence, not even a central point of interface for its users. This is the source of its resiliency and reliability. Without this property, without the ability to simply download a piece of software and start interacting with it, there is really no value to be found.

It’s fundamentally no different from a bank database at that point. No one can be guaranteed access when someone (the operator) wants to take it away, no core properties like the supply cap or inflation rate can be guaranteed when someone (the operator) can change them at a whim.

Many people in this space cheer on the erosion of these properties at this point. They champion solutions like ETFs and other custodians as a pathway to pumping the price and increasing their own fiat denominated net worth. They attack those working towards and advocating for solutions that don’t compromise the core value propositions of Bitcoin, painting them as spooks “risking what makes Bitcoin valuable.”

It is a complete inversion of reality. The Spooks are Heroes, and the Heroes are Spooks.

Saylor is literally defending custodians as a superior path to adoption than self custody. He is comparing people building and selling tools for self custody to FUDsters and fear mongers, or “paranoid crypto anarchists.” Painting the people who are building the tools necessary to defend and maintain the core properties of Bitcoin that give it value in the first place. He totally ignores the dynamics that led to gold and its role as a sound money to melt away over time as governments interfered and manipulated it.

They accomplished this because all of the gold was held by custodians, no one held it themselves. No one directly used it, everyone choosing to use paper substitutes disconnected from the precious metal itself instead. Bitcoin can very much suffer the same fate. Whether through paper bitcoin diluting market demand, or custodians outright gaining influence over the consensus process and outright changing rules to suit their own needs and wants.

Bitcoin is a social consensus system, its nature is defined entirely by actors who participate in the system. The scale of those actors, their own individual nature(s), the vulnerability to government interference, how many of them make up the majority of economic activity (more being better, less being worse), all of these things factor heavily into how Bitcoin will evolve and exist as a system.

Many people in this space are cheering on short term actions that compromise its resilience in the long term as a neutral and decentralized system for perceived short term benefits in the form of price appreciation and economic gains. Developers working diligently and with little gratitude to maintain those core properties that give it value are attacked as spooks and government agents, while corporate suits and actual spooks attacking those properties are cheered on as heroes.

The world in this space is upside down.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Craig Wright

Bitcoin strategy is a ‘betrayal’

Published

1 week ago

October 12, 2024

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Craig Wright, the controversial figure who claims to be Bitcoin’s creator, lashed out at Michael Saylor, co-founder of MicroStrategy, accusing him of distorting the true essence of Bitcoin.

Wright’s condemnation comes on the heels of Saylor’s announcing that he wants to turn MicroStrategy into a merchant bank for Bitcoin (BTC).

In a blistering critique, posted to X on Oct. 12, Wright said Bitcoin “has been distorted, manipulated, and centralized—now incapable of facilitating simple transactions without the intervention of intermediaries.”

Wright directed his ire at Saylor specifically for “building a so-called ‘Bitcoin bank’ to serve as the very obstacle that Bitcoin was designed to eliminate.”

Saylor recently told Bernstein analysts that MicroStrategy is “a Bitcoin finance company” and that the goal is to amass $150 billion In Bitcoin holdings. The Tysons Corner, Virginia-based company is the largest corporate Bitcoin holder globally.

“This is not innovation,” Wright said. “This is the betrayal of the principles Bitcoin was built upon.” See the full statement below.

This is a textbook case of misrepresentation and passing off. Michael Saylor stands before the world, falsely proclaiming that BTC is Bitcoin, when the truth is laid bare for anyone who bothers to look.
Bitcoin, as designed, is meant for small, casual transactions,… https://t.co/MDAFHr1PwI
— S Tominaga (@CsTominaga) October 12, 2024

Saylor vs. Wright

Wright’s criticism comes at a time when Saylor is positioning MicroStrategy as a major BTC holder and an advocate for Bitcoin as “digital gold.”

Wright, however, suggests that Saylor’s strategy distorts Bitcoin’s original purpose. He continues:

“To call BTC ‘Bitcoin’ while simultaneously profiting from the very middleman role that true Bitcoin rejects is the height of deception, and it is through this misrepresentation that Saylor seeks to build his empire.”

This critique reflects a broader, ongoing debate within the cryptocurrency community about the true vision of Bitcoin. While Saylor is seen by many as a key figure in bringing institutional attention to BTC, Wright and others claim that BTC has strayed from Bitcoin’s original goals, particularly regarding scalability and transaction fees.

Wright’s condemnation is sure to ignite further discussions, as the rift between different factions of the Bitcoin community—particularly BTC and Bitcoin SV proponents—continues to deepen.

Bitcoin SV is a cryptocurrency that originated from a hard fork of Bitcoin Cash (BCH) in November 2018.

Saylor has been an outspoken advocate for Bitcoin as a long-term investment, buying billions of dollars worth of BTC through MicroStrategy. He views Bitcoin as a hedge against inflation and a store of value, similar to gold.

Wright, on the other hand, insists that Bitcoin was not meant to be a store of wealth.

Satoshi claims

Wright isn’t without controversy in his own right. His claim that he is Satoshi Nakamoto, Bitcoin’s pseudonymous creator, remains a point of contention and skepticism within the wider cryptocurrency community.

A new documentary from HBO on Satoshi Nakamoto seemingly raised the possibility of Bitcoin developer Peter Todd as the cryptocurrency’s creator.

Todd denied that he’s Satoshi on X.com.

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MicroStrategy Buys Additional $489 Billion Worth of Bitcoin

Published

1 month ago

September 20, 2024

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MicroStrategy CEO Michael Saylor announced on September 20 that it has purchased an additional 7,420 bitcoins for approximately $489 million. The company now holds over 252,000 Bitcoin, acquired for $9.9 billion.

BREAKING: MicroStrategy buys another 7,420 #Bitcoin for $458.2 million. pic.twitter.com/4nBm3EUH6M
— Bitcoin Magazine (@BitcoinMagazine) September 20, 2024

Since 2020, MicroStrategy has adopted a Bitcoin-focused corporate strategy, taking advantage of Bitcoin’s potential as an inflation hedge and store of value. The company has accumulated over 252,000 bitcoins worth more than $15 billion, substantially increasing shareholder value.

MicroStrategy has borrowed money by issuing convertible senior notes to fund its Bitcoin purchases. It recently raised over $1 billion through note offerings, partly to acquire more Bitcoin. Other public companies have emulated this “buy Bitcoin” corporate strategy to take advantage of Bitcoin’s growth.

MicroStrategy’s Bitcoin treasury purchases are like a large-scale “speculative attack” against fiat currencies. By exchanging fiat for scarce bitcoin when it is undervalued, the company could reap enormous returns if bitcoin continues appreciating as a global digital store of value.

The company is undertaking the largest speculative challenge against fiat currency in history by adding the most resilient asset to its treasury. Other public companies are beginning to emulate MicroStrategy by implementing Bitcoin treasury strategies and gaining Bitcoin exposure on their balance sheets.

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Michael Saylor

MicroStrategy buys Bitcoin worth $458m, total holdings hit 252,220 BTC

Published

1 month ago

September 20, 2024

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MicroStrategy has purchased more Bitcoin, with the company announcing it had acquired an additional 7,420 BTC.

On Sept. 20, MicroStrategy announced it had completed its $1 billion convertible senior notes offering. The company planned to use the proceeds to buy more Bitcoin (BTC).

Hours later, Michael Saylor, the company’s founder and chairman, revealed that the firm purchased Bitcoin worth over $458 million. According to details filed with the U.S. Securities and Exchange Commission on September 20, 2024, MicroStrategy acquired the additional BTC at the average price of $61,750 per BTC.

MicroStrategy, an artificial intelligence-powered cloud analytics firm that’s currently the largest public holder of Bitcoin, also announced it achieved a total BTC yield of 5.1% quarter-to-date and 17.8% year-to-date.

MicroStrategy at $5.9 unrealized Bitcoin profit

The latest purchase brings the company’s total holdings to 252,220 BTC, up from 244,800 BTC.

Since it first acquired Bitcoin in August 2020, the Michael Saylor-led company has spent approximately $9.9 billion to add BTC to its balance sheet. This includes the recent addition of 18,300 BTC for $1 billion.

These assets have been acquired at the average price of $39,266 per BTC, meaning the company’s unrealized profit stands at over $5.9 billion. In August 2024, Saylor disclosed he has $1 billion in personal BTC holdings.

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