Understanding Bitcoin’s Price Increase: The Role of NFTs and MicroStrategy

03/21/2023 00:29 • Tech Trends • 92 views

According to reports, Dan Weiskopf, a co portfolio manager at Amplify Transformational Data Sharing ETF (BLOK), said that the latest increase in Bitcoin prices was due in part to the expansion of BTC use cases, such as the NFT inscription based on the Ordinals protocol, which may stimulate MicroStrategy to purchase more assets. Dan Weiskopf explained, “Some investors may notice that MicroStrategy’s 132500 BTC holdings are currently approaching breakeven levels (the company’s average cost per Bitcoin is $30137). MicroStrategy co founder Michael Saylor has stated that he will use Bitcoin as a long-term strategy.” So far, a MicroStrategy spokesperson has not responded to requests for comment on this matter. （blockworks）

MicroStrategy’s Bitcoin holdings are approaching breakeven levels

Introduction

Bitcoin, the world’s largest cryptocurrency, has been experiencing a surge in price in recent weeks. The latest increase in Bitcoin prices was attributed to the expansion of its use cases, particularly the NFT inscription based on the Ordinals protocol. In this article, we delve into the significant role of NFTs and MicroStrategy in the rise of Bitcoin’s value.

The Significance of NFTs

Non-Fungible Tokens (NFTs) have become increasingly popular in recent months, with a significant number of artists and creators using them to sell digital art, music, and other digital assets. The Ordinals protocol enables users to make use of NFTs as inscriptions on the blockchain network.
The increase in the use of NFTs on the blockchain network has led to an increase in demand for Bitcoin. NFTs are unique digital assets that require a blockchain network to verify their authenticity, and Bitcoin is the most popular cryptocurrency capable of providing this platform. As a result, we have seen a surge in Bitcoin prices as more people invest in it to access the blockchain network required for NFTs.

MicroStrategy’s Influence on Bitcoin’s Price Increase

MicroStrategy, a publicly-traded company, shocked the world in August 2020 when it invested $250 million in Bitcoin. Since then, the company has continued to amass more Bitcoin, becoming one of the largest holders of the cryptocurrency.
According to reports, MicroStrategy currently holds 132500 BTC, nearing the breakeven level of $30137 per Bitcoin. The company’s co-founder, Michael Saylor, has repeatedly stated his intention to use Bitcoin as a long-term financial strategy, further fueling the demand for the cryptocurrency.
Dan Weiskopf, co-portfolio manager at Amplify Transformational Data Sharing ETF (BLOK), believes that MicroStrategy’s increasing holding of Bitcoin is a significant factor in Bitcoin’s recent price surge. He noted, “MicroStrategy’s move to increase its holdings of Bitcoin has created a hysteria among investors, leading to more demand for the cryptocurrency.”

Conclusion

Bitcoin’s recent increase in price can be attributed to various factors, including the rise of NFTs and MicroStrategy’s influence on the cryptocurrency market. As more people embrace the Ordinals protocol to make use of NFTs, the demand for Bitcoin will continue to rise. Similarly, MicroStrategy’s ongoing investment in Bitcoin will undoubtedly continue to influence the cryptocurrency’s price.

FAQs

1. What is NFT?
Non-Fungible Tokens (NFTs) are unique digital assets that are verified on a blockchain network.
2. What is MicroStrategy?
MicroStrategy is a publicly-traded company that has become one of the largest holders of Bitcoin.
3. What is Bitcoin’s current price?
As of August 2021, Bitcoin’s price is approximately $45,000.

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