What is Michael Saylor doing? He's removing Bitcoin from circulation. He doesn't even hide the fact that this is his primary goal. But then another question arises: if Michael Saylor and other institutional players remove Bitcoin completely from circulation, won't that mean a complete halt to transactions on the network? And how will miners make money in this situation? Considering that the network experiences a halving every four years, the cost of Bitcoin mining effectively doubles every four years.
This is not a real argument as there is no real scenario under which a significant amount of supply would be removed from the circulating supply for it to have a big effect on transactions. People tend to mix these things up. Just because it is supply, it does not mean that it comes from people who were actively transacting on Bitcoin or who would actively transact on Bitcoin. Before this could become a problem the price of Bitcoin would end up becoming so high that there would be no issues with dividing even a small number of Bitcoin for the circulating transactions. We are so far off from a point where the removal of the supply from circulation could be a problem that I do not understand why we should discuss such a scenario. It is highly unlikely.
Michael Saylor also uses centralized Bitcoin storage (in Coinbase cold storage). This directly violates the principle of Bitcoin's decentralized storage. It creates a single point of failure in the system.
It does not violate anything, Bitcoin gives you the ability to choose. If you want to choose a centralized way of storing it, that is your decision to make and you get the consequences of that choice. Choosing differently from others or making choices that are not the best is not a violation of any Bitcoin principle. The Bitcoin principle is about freedom and it is made possible by the decentralization of the network and the protocol, it is not about forcing people to do anything.
Before now, we had thought that one the government or an institution tries to buy to many bitcoin in order to halt circulation, that bitcoin will jump so high that it will affect their buying power. So, what is happening now that the price is not shooting and we are complaining like Saylor is buying all the BTC in circulation?
He has not bought anything close to the number that would be needed to have an impact on other things because of a significant reduction in circulating BTC. What the other person wrote is not true right now. It seems that I often find a big misunderstanding what Bitcoin is about when some people here complain that others have a lot of money, it seems to be sneaky form of envy. Bitcoin is about choice and freedom. If someone with a lot of money wants to buy all the Bitcoin possible, he should be able to do that. Any ideas about restricting them or vilifying them just shows meanness and a false understanding of Bitcoin. Bitcoin is for everyone, for those that you like and for those that you don't like that is what it means to have a system that is permissionless.
Continued buying from Strategy or some other big player like that is not a good thing, but you can't prevent them from doing it. They are exercising their choice to get Bitcoin the same as everyone else. They have enough to be quite a big risk if there were to be a compromised or big selling, but they do not have nearly enough to cause issues that relate from a lack of circulating Bitcoin if that is even possible. As the number of circulating Bitcoin contracts, the price will go up and as it goes up the number that is circulating will increase again. That is how the market works.
