3 Reasons Why MicroStrategy Adopted Bitcoin

MicroStrategy has adopted Bitcoin as its reserve currency - and stunned commentators by purchasing over 21,000 BTC on Aug. 11.

The world's largest publicly-traded business intelligence company has swapped fiat for Bitcoin as its treasury reserve asset, but the reasons behind it suggest that more big businesses will have no choice but to do the same.

Why did MicroStrategy choose Bitcoin, and will others follow?

In a press release issued on Aug. 11, CEO Michael Saylor went further than most by calling Bitcoin "Digital gold."

That angle closely mimics some of Bitcoin's foremost proponents, notably Saifedean Ammous, who in his book, "The Bitcoin Standard," repeatedly explains that so-called "Digital scarcity" puts Bitcoin in a separate league to any other form of money which has ever existed.

Bitcoiners were particularly excited about MicroStrategy because it unashamedly replaced fiat currency for cryptocurrency.

"MicroStrategy bought 0.1% of the Bitcoin supply. Very few companies will be able to copy this strategy," What Bitcoin Did podcast host Peter McCormack tweeted in response.

For Saylor, there were multiple red flags that swayed him to turn to Bitcoin.

"MicroStrategy's CEO said they bought Bitcoin to avoid inflation," he summarized.

"We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value," he said.