By being pre-programmed so that 21 million bitcoins exist, the model of the greatest cryptocurrency is not, by definition, a deflationist. After all, the new BTC is exploited every day, and none is destroyed in the traditional sense of the term, which is the opposite of the deflationist.
However, the CEO of Cryptotics explained how the strategy and its co-founder, and the BTC champion Michael Saylor, made bitcoin in a deflationary asset.
Is BTC deflationary?
By definition, a deflationist means that the food supply is designed to decrease over time. Thus, by this explanation, the newly created BTC every day (currently ~ 450 BTC / Day) does not put the cryptocurrency in this category. Someone would say that the BNB should be there because it has a combustion mechanism to reduce the overall supply from 200,000 to 100,000.
Ethereum has also made progress on this subject, but it is a different subject and rather controversial (and it does not really work as promised, at least not always).
In the case of the BTC, however, there is a great spoken hero (no) who deserves a big “thank you” of Bitcoin Maxis, according to the chief of the cryptocurrency, Ki Young Ju (even if he deleted the original post with the thank you note). In the update, he explained that Michael Saylor, through the company he co -founded, transformed Bitcoin into a deflationary asset because the entity “buys BTC faster than it is exploited”.
The CQ CEO determined that the strategy of the strategy (yes, we get to what extent it sounds) not to sell at all costs has transformed its massive hiding place of more than 555,000 BTC into an illegal supply. This means that MSTR's assets are equal to -2.23% of the annual deflation rate for Bitcoin. The percentage could be even higher when we examine other “stable institutional holders” which incorporated the HODL strategy.
#Bitcoin is a deflationist.@Strategy Buy BTC faster than it is extracted. Their BTC 555K is illiquid without plans for sale. MSTR's assets alone mean an annual deflation rate of -2.23% – higher with other stable institutional holders. pic.twitter.com/9vkt3idcyo
– Ki Young Ju (@ki_young_ju) May 10, 2025
555 450 and counting
The company started its turn of mass accumulation in September 2020 while its name was Microstrategy and Saylor was still CEO. At a time when Bitcoin fought to stay above $ 10,000 (yes, zero less than now), the Nasdaq business intelligence information company bought 21,454 BTC via 78,388 transactions outside the chain.
The following year, the cryptocurrency prize soared to a summit of almost $ 70,000. The company continued to buy. Then the assets plunged deeply below $ 20,000 after the FTX accident as well as many other industry explosions. The company continued to accumulate, even if its reserve was now in the red.
The US elections of 2024 only strengthened the condemnation of the strategy, and the company now holds 555,450 BTC, worth almost 58 billion dollars at current prices. This puts its assets in an unrealized profit of almost $ 20 billion.
Free binance $ 600 (EXCLUSIVE Cryptopotato): Use this link to record a new account and receive an exclusive welcome offer of $ 600 on Binance (all details).
Limited offer for cryptopotate players at Bybit: Use this link to record and open a free $ 500 position on any part!
