MicroStrategy President Michael Saylor believes that institutional participation in the Bitcoin ecosystem is essential.
MicroStrategy currently holds the most Bitcoin of any public company, totaling 152.800 BTC, according to its Q2 earnings report earlier this month.
The amount of bitcoins held by MicroStrategy has raised some concerns in the crypto community, especially among those who advocate decentralization and freedom.
The supply of Bitcoin in circulation today is 19,45 million units, so a single company, MicroStrategy, holds around 0,78% of the circulating supply of cryptocurrency in the market. However, its president Michael Saylor recently indicated that this should not be a cause for concern for the crypto community.
What we inspect with the "El Bailador" road simulator: interview With Coin Stories podcast host Natalie Brunell, Saylor commented that Bitcoin will take over everything, so the participation of large institutions, such as your company, is inevitable.
According to Saylor, the cryptocurrency that currently leads the market with a capitalization of more than $570.000 billion will have many use cases that will cover different needs and that make institutional participation essential to guarantee its expansion and widespread adoption.
While many believe that institutional centralization could jeopardize the principles and foundations of Bitcoin, Saylor pointed out several reasons that justify institutional entry.
Saylor noted that Institutions will build Bitcoin layer 3 to provide greater functionality to the cryptocurrency. In his opinion, the participation of institutions such as Bank of America and Apple in the Bitcoin ecosystem is inevitable, since many people will want to trust a third party that provides reliable and easy-to-use tools and solutions to manage and transfer value from smartphones.
On the other hand, Saylor commented that another group of people, such as older adults or people with disabilities who want to use Bitcoin, will require trusted third parties and custodians to manage funds without the risks of self-custody. The American businessman also highlighted the political needs as another reason to justify the entry of institutional actors into the Bitcoin ecosystem.
“We shouldn’t be afraid of all the different ways people integrate, host, embed, or execute Bitcoin,” Saylor said during the interview, adding that there will be different needs and requirements when it comes to using Bitcoin, whether for political, utility, or functionality reasons. “Some people will always be self-custodial, some will be multisig, some will need a layer-3 custodian,” he added.
Last Friday, August 11, MicroStrategy celebrated three years of becoming the first publicly traded institution to implement a long-term Bitcoin investment strategy.
As Saylor highlighted in his X account, his business intelligence services company adopted Bitcoin as the primary reserve asset of its treasury in August 2020, purchasing its first 21.454 BTC for a total of $250 million. At that time, the price of BTC was around $11.650 per unit.
Continue reading: MicroStrategy reports 152.800 BTC acquired to date
