Why Did MicroStrategy Decide to Buy Bitcoin Instead of Ethereum?
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One of the earliest commercial adoptions of Bitcoin was seen in MicroStrategy. The Business intelligence organization is known for its strong stance on Bitcoin advocacy, and its CEO Michael Saylor has been on a mission to preach the Bitcoin bible.
However, there is a recent analytical report that MicroStrategy could have the possibility to generate more profits if it has chosen Ethereum rather than Bitcoin.
It is well-known fact that MS was hoping that Bitcoin does no falls below $19K to avoid a Margin call. The latest hypothetical report suggests that the company stands to make around 108.72% in profits with Ethereum reserves. This report also suggests that the company could create profits valued at $3 billion. This report has been published by a firm called Blockchain Center.
Is Ethereum a Good Investment?
As per the crypto analyst, MS held around 130,000 Bitcoin on September 20, 2022. The total value of the Bitcoin reserve was $2.76 billion. However, if the company invested the same capital in ETH acquisition rather than Bitcoin, it could have amassed around 3,542,000 ETHs valued at $5.77 billion.
It is worth noting that MS adopted the Dollar Cost Averaging Method for its Bitcoin reserve fattening. Under the siege of CEO Michael Saylor, the organization also resorted to issuing bonds and gathering loans to expand its Bitcoin reserves.
Saylor also maintained that Bitcoin is a store of value like no other and touted it as the ultimate store of value.
Some of the big personalities from the internet have taken a dig at Michael Saylor, the CEO of MicroStrategy, for his attachment to Bitcoin. Among these critics are names like Gold Mogul, Peter Schiff and the infamous author of the cult classic Black Swan, Nassim Taleb.
The Lebanese author has been reportedly infatuated with cryptocurrencies in the past and even preached the use of the flagship crypto for his people.
However, Taleb has vocally criticized Saylor’s decision not to sell Bitcoin despite the prolonged bear market. On the other hand, Ethereum, which is a secondary blockchain project adjacent to Bitcoin, has recently gained some traction on account of its PoS shift and merge event.
At present, both Bitcoin and Ethereum hold a bullish orientation, and the per-unit price difference between both currencies is massive.
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