Suppose Bitcoin and crypto continue growing at the same rate. Will we look back at the most recent cycle and recognize Microstrategy's Bitcoin purchases as the catalyst moving it beyond the tipping point?

I'm embarrassed to admit it, but I enjoy Miley Cyrus. I wouldn't go to one of her concerts, but I will turn up her songs when I hear them in my car. So the other day, I thought, "Would Miley Cyrus be the star she is today if her father wasn't Billy Ray Cyrus?" If you need to get more familiar with Billy Ray Cyrus, he sang the 1990s mega-hit Achy Breaky Heart. Although, I'll proudly admit I wasn't much of a Billy Ray fan.

However, did Billy Ray's connections, fame, and musical knowledge (I have a hard time calling it talent), catalyze Miley Cyrus's career? In other words, if Billy Ray Cyrus didn't sing Achy Breaky Heart or achieved modest musical fame, would Miley be as big as Miley is today?

I don't say this to detract from or criticize Miley's talent. On the contrary, I've already admitted that I like her music. But would Miley Cyrus be a household name without her dad?

I'll admit this is a thin connection to Bitcoin and Microstrategy. Still, fifteen years from now, will we look back at Microstrategy's Bitcoin purchases over the past two years and think of Michael Saylor as Bitcoin's Billy Ray?

If you are still reading at this point, I promise the content in this article will be better. If you still need to read my other article, How Microstrategy's Bitcoin Purchases Could Doom Bitcoin, please check it out. I discuss some potential drawbacks and risks of Microstrategy's Bitcoin buys. But in this piece, I will share three arguments why Microstrategy's purchases may be one of the essential catalysts in Bitcoin history.

My Bias

I own Bitcoin. I own Microstrategy. It's in my best interest if the price of Bitcoin and Microstrategy goes up. I believe in a lot of the theories behind Bitcoin. However, I also realize that it's not foolproof, has a risk of failing, and I could look back at this time and wonder how I could have been so dumb.

But I think that will be different. My confidence in Bitcoin is why I allocate a percentage of my portfolio and continue accumulating more.

Microstrategy Benefit #1: The first domino is the most important

A considerable portion of the world's wealth exists in publically traded companies. The machine grows larger as people with means are nearly required to feed it in the hope of getting ahead or one day retiring. Saving money in a traditional savings account over the long term is foolish, and we must put our money somewhere.

Though I don't have the stats, I would venture that public companies have trillions of dollars on their balance sheets. But, like ordinary people's money, these dollars lose purchasing power over time. As a result, many companies will buy back stock, acquire other companies, or save these funds for a rainy day.

When Microstrategy first purchased Bitcoin in 2020, they legitimized using company treasuries to buy and hold Bitcoin. And they didn't just tiptoe in with a small purchase. As a result, most of Microstrategy's value today is in their Bitcoin holdings.

Finally, Bitcoin is a free market. Therefore, it should be able to be bought, held, and sold by anyone who wants to participate, whether an individual, corporation or sovereign government.

You don't have to be a sociology genius to know that being the first to make such a move is risky. And if it fails (I don't think it will), Michael Saylor's recklessness will be taught about for decades to come. But, now that a respected billionaire in corporate America is committing to crypto, it opens the door for trillions of dollars to enter the space.

Microstrategy Benefit #2: Michael Saylor proselytizes Bitcoin

I was going to say that Saylor is a missionary, but I think that term has negative connotations. I looked up the definition of proselytizing and feel that it fits better:

Definition from Google

Saylor is well-spoken and all-in on Bitcoin. However, his commitment requires him to share his vision with other corporate leaders and financially literate people. YouTube influencers like Bitboy, Lark Davis, or the brothers at Altcoin Daily aren't going to capture the attention of Wall Street executives like one of their own.

Having someone in the corporate structure explain the value and serve as an example may be transformational. Yes, Microstrategy is down on its Bitcoin investment right now. But that's ok. Everyone is down — Apple, Meta, Google, and Amazon. The impact will be evident during the next bull run, and that will be when other corporate leaders seek Saylor's council and follow in his footsteps.

Microstrategy #3: They have diamond hands

Risking other people's money is significantly easier than risking your own. While a typical retail investor may feel pressured to sell their Bitcoin holdings due to life events, emotions, gains, taxes, losses, and multiple other reasons, a corporation will likely feel less pressure to liquidate their Bitcoin.

We have already witnessed this as Microstrategy has been buying more Bitcoin as the price has dropped. As a Bitcoin holder, we want more buyers to treat their Bitcoin as if it's in a virtual vault. This reduces the supply and will drive the price higher as demand increases. It will also decrease volatility over the long run, which is essential.

I can sell my Bitcoin anonymously, and no one cares or needs to know. However, if Microstrategy sells its Bitcoin, that significantly blows Saylor's ego, credibility, and professional status. We have already seen that most billionaires care tremendously about their self-worth and image.

Key Takeaways and My Opinion

I have mixed emotions about Microstrategy and other corporations buying and holding Bitcoin. Ultimately, my greed wants them to attract more money to the space and make assets I own go up in value. However, I like the most significant number of ordinary people to benefit from the asymmetric growth potential.

As long as the government keeps holding down the ability for people to own Bitcoin via an ETF, I am a massive proponent of Microstrategy's purchases. They allow many ordinary people to own Bitcoin via proxy in their stock trading and retirement accounts.

I like and appreciate Michael Saylor's opinions. However, I am a proponent of the entire crypto space, and he is critical of any crypto not named Bitcoin. He has to be this way because this is where he is fully invested. And I'm ok with that because as more money comes into Bitcoin, it can flow into the entire crypto ecosystem, so the ends justify the means.

The most important takeaway is that if you want to be positioned in Bitcoin, it makes more sense to acquire it before other corporations follow Microstrategy's lead. Once the crowd follows, $17,000 Bitcoin will sound like $500 Bitcoin today.

There will always be critics like Paul Krugman, Peter Schiff, Nouriel Roubini, and other skeptics saying that Bitcoin will go to zero. Still, their argument loses validity as more people like Michael Saylor, Microstrategy investors, and people like me and you believe in Bitcoin.

What are your thoughts? Is Michael Saylor spreading the word from true belief, or is he a shill looking to gain immense wealth and notoriety? Will other corporations follow Microstrategy's lead? Do you agree that front-running other institutional buyers makes sense? Share your opinions in the responses.