With MicroStrategy praising scalability, arguably, the most significant Bitcoin adoption move of 2020 turned 78,338 off-chain transactions into just 18 on-chain ones.
The CEO of the company that just purchased 38,250 Bitcoin has said that BTC (Bitcoin) as a store of value scales merely fine.
Michael Saylor revealed more information concerning MicroStrategy’s dramatic launch into Bitcoin. He did it in a tweet on September seventeen.
Since its first buy in August, MicroStrategy continually made the headlines. Now, it swapped over $400 million of spare capital from the United States dollar to BTC.
This week, an interview between Morgan Creek Digital co-founder Anthony Pompliano and Saylor underscored his commitment. It was previously highly skeptical of BTC.
Nevertheless, his belief in the technical fundamentals of the network (and its future) is not absolute. For example, the problem of scaling to meet demand is a non-issue for Saylor. It is thanks to off-chain transactions.
Bitcoin
Initially, the buy-in of MicroStrategy was a case in point. The initial buy-in was 21,454 Bitcoin for $250 million.
Pompiliano wrote that it acquired 21,454 Bitcoin with 78,388 off-chain transactions. Then they secured it in cold storage with eighteen on-chain transactions.
Bitcoin is merely accepted as a store of value.
Furthermore, Saylor said that a status quo where on-chain transactions for significant investors will remain a rarity.
Pompliano said that based on their model if #Bitcoin is treated as a treasury reserve asset, 99.98% of all transactions will be off-chain. Moreover, assets-at-risk will be in cold storage 99.92% of the time.
With solutions such as the Lightning Network, off-chain transactions allow transaction volume of Bitcoin to increase without adding volume to the Blockchain. Moreover, it will enable for raising fees to appeal to minors.
The Bitcoin Standard is a popular book by Saifedean Ammous. He wrote that off-chain activity would become the norm when BTC gains as much larger user base.
