Author of "The Bitcoin Standard": Saylor says that even holding 10 million BTC "will not threaten the protocol"

Source: Cointelegraph Original text: "The Bitcoin Standard" Author: Saylor Even holding 10 million BTC "does not threaten the protocol"

Key Points Overview

Saifedean Ammous, the author of "The Bitcoin Standard," stated that even if Michael Saylor's strategy hoarded nearly 48% of the total Bitcoin supply, it would not pose any risk to the Bitcoin protocol or its price.

"If Michael Saylor ultimately holds 10 million bitcoins, what will he do? He will likely just use them to continue buying more bitcoins," Ammous said during an interview with cryptocurrency entrepreneur Anthony Pompliano on April 25.

"Fundamentally, I don't think this poses a serious threat to the protocol," Ammous said.

Ammous stated that if Saylor manages to accumulate 10 million bitcoins, it is unlikely that he would "wake up one day and say, let’s try a hard fork to create another 5 million bitcoins in supply, so I can have 15 million." He reiterated that doing so would decrease the value of his existing 10 million bitcoins.

Previously, several participants in the cryptocurrency market expressed concerns about Bitcoin whales, questioning to what extent their holdings could lead to risks such as market manipulation, centralization, or liquidity.

As of the time of publication, according to Saylor Tracker data, Saylor's company Strategy holds 538,200 bitcoins, valued at approximately $50.18 billion. Meanwhile, according to BlackRock data, the net asset value of the BlackRock iShares spot Bitcoin ETF is $54.48 billion, equivalent to about 585,000 bitcoins.

These two companies collectively hold about 5.3% of the total Bitcoin supply. However, Ammous stated that this is not a cause for concern.

"This is not to say that Michael Saylor or Larry Fink own all these Bitcoins. It is their shareholders who own these Bitcoins, or rather, the ETF holders who own these Bitcoins."

"Regarding BlackRock and Strategy holding these Bitcoins, they do so because they fulfill their fiduciary responsibilities to shareholders and ETF holders in a satisfactory manner," Ammous added.

Ammous explained that if BlackRock or Strategy begins to manage their holdings in a way that is detrimental to shareholders or ETF holders, or starts to abuse their position, then investors will withdraw their funds and seek other ways to gain exposure to Bitcoin.

On April 24, Cointelegraph reported that with the support of Tether, SoftBank, and Cantor Fitzgerald, the new Bitcoin asset management company Twenty One Capital, led by Strike founder Jack Mallers, is seeking to replace Strategy as "a premium tool for investors to gain a more capital-efficient exposure to Bitcoin."

Related: Strike founder Mallers will lead the company in seeking a Bitcoin (BTC) investment strategy that surpasses MSTR.

This article does not constitute investment advice or recommendations. All investment and trading activities carry risks, and readers should conduct their own research before making decisions.