When Bitcoin (BTC) was $0.30, Hal Finney wrote in December 2010:
Fast forward 14 years, Michael Saylor announced that his micro-strategy (MSTR) would “endgame will become a major Bitcoin bank.”
The BlackRock IBIT ETF, which is working on few other Bitcoin (BTC) owners, owns 3% of the circular supply in a $65 billion treasury.
Given his asset-based size, Saylor has the ability to lead the market Splitting the reserve For a significant population of future bank customers.
For context, MicroStrategy's Treasury Department is roughly equivalent to deposit bases at banks such as Comerica and Santander, and plans to increase the size.
“A very valid reason why Bitcoin Support Banks exist.”
In 2010, Finney was working on co-creating with a handful of Cypherpunks on the Bitcoin network, including a few months of personal discussions on Nakamoto.
As prices began to exceed the $1 million market capitalization for the first time, Finney began writing predictions about the possibility of disrupting the entire financial system.
In Finney's view posted on the Bitcointalk forum, BTC-backed banks will not only inevitably issue “their own digital cash currency that can be redeemed for Bitcoin.”
Furthermore, Finney writes that services as bank reserves will be “the ultimate fate of Bitcoin.” BTC will provide services “as a reserve currency for banks that issue their own digital cash” in Finney's multicrypt currency vision.
Far from the transactional supplements on the chain, Finney concluded that interbank settlements will be the main purpose of BTC. “Most Bitcoin transactions take place between banks and resolve net transfers.”
This is exactly what Saylor plans to build. Specifically, MicroStrategy plans to become a merchant bank He owns $100 billion worth of BTCsupports a wide range of financial products.
Cyberspace Banking Non-Cyberspace Banking
Complementing BTC itself, which Saylor describes as “a cyberspace bank run by corrupt software,” MicroStrategy can offer non-seaverspace products such as brick and mortar stores, cards, checks, terrors, brokers and loan documents.
Read more: I created a dictionary of invented terms for MicroStrategy
To date, no US bank holds BTC as its main reserve asset. Regulations are partly responsible.
New laws such as the Advanced Stage Genius Act Bill can ease banks' ability to utilize BTC as a reserve asset for early classes of digital cash such as USD-pegged stubcoins.
Critical, the US Federal Reserve must do so too. Easily abilities for bank master account owners Modify and quantify the BTC values for overnight reservations.
Despite these obstacles, Saylor believes he can ultimately turn his company, or one of its divisions, into a suitable bank. If he can achieve this vision, he will be able to complete one of BTC's visionary Hal Finney's earliest predictions.
