Cryptocurrency

investment of MicroStrategy in Bitcoin and supply of Ethereum

In episode 16 of In Analysis with Breaking News, we talked about the recent purchase of more than 21,000 bitcoins on the part of MicroStrategy, one of the firms of business intelligence most experienced of the market. Also, we discuss the implications after the controversy aroused in Twitter due to the disinterest shown by the leaders and members of the community of Ethereum regarding the supply of your currency.

21.454 bitcoins is a amount that few could afford to buy. The truth is, less than 1,000 companies around the world could buy that amount. Not because other do not have money, but because it will never exist more than 21 million bitcoins (without subtracting the millions of coins lost forever).

MicroStrategy is aware of the shortage determined by code in Bitcoin, as well as the rest of the properties that convert it into digital gold “harder, stronger, faster and smarter than any money that has preceded”.

The purchase of over $ 250 million in bitcoin was strategically considered, therefore, to be a company open to public investment, the money of their investors is also committed. Shares of MicroStrategy grew in value by after the posting of the purchase, indicating the approval of the shareholders with the strategy. And we know what happens when a company takes a course of action favorable to their actions: other companies will follow.

The shortage of digital is one of the values most proficient for the bitcoiners, as well as its verifiability. Not so much for the community of Ethereum, who recently showed that the highest do not trust, verify is not so deeply rooted in their ethics.

Several bitcoiners, between those who emphasized Pierre Rochard, Michael Goldstein, interpelaron to the community of Ethereum respect to the circulating current of its currency, which responded with demonstrations of confidence in the supply approximate established by the protocol, in the words of Vitalik Buterin, the creator of the platform. Further, between the different explorers of blocks of Bitcoin there is a discrepancy of thousands of ethers with respect to the circulating current.

In Bitcoin there is a specific function of the nodes that allows to query in real time the circulating. This is, in good measure, because Bitcoin seeks to mitigate the need for trust in third parties and favors, in its place, the transparency of math and the verifiability of the individual. Due to the architecture of Ethereum, this type of queries are more complicated, but this does not remove the fact that the confidence to persist where it has been able to be mitigated.

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In Analysis with Breaking News is a space of deepening in the current ecosystem bitcoiner. Offers its listeners a wider context about the news events of the week in terms of markets, mining, privacy, technology and more, based on the research, knowledge and experience of their hosts. The goal is to give the audience more elements to form their own critical opinion, urging them always to do their own research, educate themselves and not blindly trust anyone.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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