Time Bomb in the Crypto World? MicroStrategy May Become the Biggest Risk Source for Bitcoin!

The real 'threat' in the crypto world may not be a specific exchange, but rather MicroStrategy, which claims to be a Bitcoin believer.

Its buying strategy is almost chaotic—frenzied accumulation at the peak of a bull market, and starting to sell at the bottom of a bear market. Selling BTC in December 2022, right at the low point, is likely due to cash flow constraints. This kind of operation resembles a 'faith-based gambler,' going all in regardless of market conditions, with no awareness of risk hedging.

Compared to Buffett, the difference is stark. Buffett always holds a large amount of cash for emergencies, while MicroStrategy once put all its chips on the table, almost selling the company to raise funds.

What’s more dangerous is that it currently holds over 550,000 Bitcoins. Once a financial crisis erupts and it is forced to sell, it could deal a devastating blow to the market—prices could instantly be halved or even worse, seriously threatening the stability of the decentralized ecosystem.

Ironically, the cost of five years of dollar-cost averaging is as high as $68,478; once Bitcoin makes a slight correction, it will incur losses across the board. Five years of effort may only result in a 'faith bankruptcy.'

Do you think this is the power of faith, or a disaster in the making?