If one organization holds too much of the first cryptocurrency and continually increases its holdings, Bitcoin could lose its reputation as a decentralized financial instrument, Calacanis explained. The American entrepreneur believes that if MicroStrategy continues to buy bitcoins in large quantities, this will cause distrust in the cryptocurrency. People will feel as if Bitcoin is controlled by one person or group, so investors may abandon Bitcoin and switch to another, more decentralized cryptocurrency.
“If one company owns more than 10% of all BTC, Bitcoin could break. MicroStrategy is buying too many coins, so people will rightly be outraged that they work for Michael Saylor, the head of this company. Then people will have to switch to a more honest asset,” Calacanis reasoned.
MicroStrategy recently bought 5,262 BTC for $561 million at an average price of $106,662 per coin. MicroStrategy currently holds 444,262 BTC (2.2% of the total Bitcoin supply). Previously, MicroStrategy executive chairman Michael Saylor said he would continue to raise capital until the company owned at least $3 trillion in Bitcoin and reached a market capitalization of $10 trillion.
According to Saylor’s recent forecast, in twenty years the market capitalization of Bitcoin will grow to $280 trillion, and the coin’s exchange rate will be $13 million. Saylor called decentralization a unique quality of Bitcoin.
Source: Bits
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