Home Business The crypto market has collapsed. They are still buying bitcoin.

The crypto market has collapsed. They are still buying bitcoin.

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“If you talk about the risks someone is taking and they are otherwise healthy, you can be accused of creating a bank run or being a troll,” said Michael Saylor, chief executive of MicroStrategy. , a software company that has built up a large reserve of Bitcoin. “It’s a bit difficult to explain this theoretically before the accident happened. But now it happened.

In 2020 Mr. Saylor announced that MicroStrategy would start storing Bitcoin because it had “more potential for long-term appreciation than holding cash”. At the end of June, the company owned 129,699 Bitcoins, purchased for just under $4 billion, according to the SEC deposits. (With Bitcoin’s recent drop in value, that stash is now worth about $1 billion less than what MicroStrategy paid for it.)

At the height of the crash, MicroStrategy spent $10 million for 480 Bitcoins, even as the price per coin dropped to around $20,000. The purchase was the smallest MicroStrategy had made in over a year. Mr Saylor said the size of the buy was not an indication that he lacked confidence in the currency; it was the most the company could afford, he said, given the cash on hand.

“I still wish we could buy more,” he said. “It’s frustrating.”

Mr. Saylor and other maxis have occasionally complained that Bitcoin is misrepresented in Washington, where lawmakers have Express growing concern about the environmental impact of cryptocurrency.

Some crypto advocacy work in Washington is funded by companies that offer virtual currencies based on an alternative verification system, which requires less energy to maintain. In April, Chris Larsen, a billionaire who co-founded cryptocurrency company Ripple, announced that he was contributing $5 million to a marketing campaign calling on Bitcoin to ditch its energy-intensive mining infrastructure, which proponents say is essential to maintaining network security and fairness.

Now Bitcoin supporters are building their own political apparatus. This year, David Zell, a Bitcoin advocate, launched the Bitcoin Policy Institute, a think tank that promotes a pro-Bitcoin agenda in Washington. The institute argued that concerns about bitcoin’s energy consumption are overblown.

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