The digital asset community has criticized Microsoft for rejecting a plan to invest in Bitcoin after shareholders voted against it. As a buffer against inflation, the plan, titled “Assessment of Investing in Bitcoin,” called for allocating 1% of Microsoft’s total assets to Bitcoin.
Microsoft’s board rejected the plan despite growing interest in corporate cryptocurrency adoption, pointing to the necessity to prioritize reliable assets for liquidity and operating funds as well as Bitcoin’s volatility. Critics contend that because businesses like MicroStrategy are still embracing Bitcoin, this cautious approach may lead to lost opportunities.
Crypto Community Reacts to Decision
On X (previously Twitter), Justin Sun, the founder of Tron (TRX), mocked Microsoft’s rejection of Bitcoin and suggested “purchasing Bitcoin when it reaches $1 million.” He made this remark as Bitcoin just surged from $85,155.11 to $103,900 in the last 30 days.
The cryptocurrency community also pointed out that Microsoft might have made a mistake by remaining silent, particularly since Bitcoin recently peaked at around $2 trillion before falling to $1.9 trillion due to market corrections.
Trump’s Administration Might Bolster Bitcoin
According to Eric Trump, son of President-elect Donald Trump, his father’s pro-crypto government might see Bitcoin reach $1 million. By designating former PayPal COO David Sacks as the White House AI and crypto czar, Trump has taken action to encourage the adoption of cryptocurrencies.
Axios claims that Trump wants Bitcoin to hit $150,000 while he is president. According to an unnamed insider, Trump intends to concentrate on the rise in the price of Bitcoin and sees the cryptocurrency market as a “second stock market.”
Since Trump was re-elected, the value of Bitcoin and other cryptocurrencies has increased dramatically. Bitcoin struggled to maintain support levels after surpassing the $100,000 milestone, falling below $94,000 for a brief period before rising to $97,000 during the course of the last day.
Conclusion
Microsoft’s rejection of investing 1% of its assets in Bitcoin has sparked debate within the cryptocurrency community. While the company cites Bitcoin’s volatility and the need for liquidity stability as reasons for its caution, critics argue that this conservative approach may cause Microsoft to miss out on significant growth opportunities.
Bitcoin’s recent performance, including substantial price increases, demonstrates its potential as an investment asset, as seen with companies like MicroStrategy embracing it.
Additionally, the optimism surrounding pro-crypto policies under Trump’s administration could further fuel Bitcoin’s value. Microsoft’s decision reflects a traditional corporate mindset, potentially at odds with evolving financial trends.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.