Microstrategy CEO Michael Saylor has shown support for the idea of burning Bitcoin keys after the holder dies. In his statement, he said it would be a gift to the entire Bitcoin community. Saylor made the statement while appearing in a video show.
If Saylor’s idea of burning lost Bitcoin or destroying the private keys after death, would reduce the total Bitcoin supply. It is like the halving event, but this time, the BTC in the wallet is lost forever. Ultimately, the move means that the price of the token will increase, giving the market huge benefits.
Bitcoin scarcity helps its value
Bitcoin’s value is tied to its scarcity, as only 21 million BTC can ever be mined. Saylor’s idea will remove from the already scarce supply of BTC, driving its value into the sky. It means that burning it will be a pro-rata contribution to its holders globally.
According to BiTBO, about 19 million BTC are currently in supply, which represents 94% of the entire supply. As it stands, miners can only mine about one million Bitcoins, which could happen very soon seeing as about 450 Bitcoins are mined every day.
Michael Saylor has been practicing what he is preaching concerning Bitcoin, seeing as Microstrategy has become one of the corporations holding BTC. During the show, Saylor said he wants to be seen as the person who took the torch from Satoshi and commercialized it with firms and governments years after he is gone.
Microstrategy CEO’s comments generate criticism
Michael Saylor’s comments have drawn the ire of crypto users considering his influential status in the Bitcoin community. Most people feel like the act may be wasteful, given the present and potential price of the asset upon the holder’s death. The move is also against the financial inclusion that Bitcoin relies on.
Another concern raised was that it could disrupt the Bitcoin ecosystem if the whales adopt it. However, not all users are against it as most people feel it is a welcome development. A user noted that it could be likened to being passed a diamond, talking about the price of Bitcoin after a huge stash is burnt. Another user said it would be a good deal for long-term holders of the token.