{"id":26118,"date":"2025-05-10T10:17:58","date_gmt":"2025-05-10T10:17:58","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=26118"},"modified":"2025-05-10T10:17:58","modified_gmt":"2025-05-10T10:17:58","slug":"how-saylors-strategy-transformed-bitcoin-into-a-deflationary-asset-details","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=26118","title":{"rendered":"How Saylor\u2019s Strategy Transformed Bitcoin into a Deflationary Asset: Details"},"content":{"rendered":"
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By being pre-programmed to have only 21 million bitcoins ever to exist, the largest cryptocurrency\u2019s model is not, by definition, deflationary. After all, new BTC is mined every day, and none is being destroyed in the traditional sense of the word, which is the opposite of deflationary.<\/p>\n

However, CryptoQuant\u2019s CEO explained how Strategy and its co-founder, and BTC champion, Michael Saylor, made bitcoin into a deflationary asset.<\/p>\n

Is BTC Deflationary?<\/h2>\n

By definition, deflationary means that the asset\u2019s supply is designed to decrease over time. So, by that explanation, the newly minted BTC every day (currently ~450 BTC\/day) does not put the cryptocurrency into that category. Someone would argue that BNB should be there since it has a burning mechanism to reduce the overall supply from 200,000 to 100,000.<\/p>\n

Ethereum also made some progress on that matter, but that\u2019s a different and rather controversial topic (and it doesn\u2019t really work as promised, at least not always).<\/p>\n

In BTC\u2019s case, though, there\u2019s one big (un)spoken hero who deserves a big \u201cthank you\u201d from Bitcoin Maxis, according to CryptoQuant\u2019s chief exec, Ki Young Ju (even though he deleted the original post with the thank you note). In the updated one, he explained that Michael Saylor, through the company he co-founded, has turned Bitcoin into a deflationary asset because the entity is \u201cbuying BTC faster than it\u2019s mined.\u201d<\/p>\n

CQ\u2019s CEO determined that Strategy\u2019s strategy (yeah, we get how it sounds) not to sell at any cost has turned its massive stash of over 555,000 BTC into an illiquid supply. This means that MSTR\u2019s holdings are equal to -2.23% annual deflation rate for bitcoin. The percentage could be even higher when we examine other \u201cstable institutional holders\u201d who have incorporated the HODL strategy.<\/p>\n

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#Bitcoin<\/a> is deflationary.@Strategy<\/a> is buying BTC faster than it\u2019s mined. Their 555K BTC is illiquid with no plans to sell. MSTR\u2019s holdings alone mean a -2.23% annual deflation rate\u2014likely higher with other stable institutional holders. pic.twitter.com\/9VKT3IdcYo<\/a><\/p>\n

\u2014 Ki Young Ju (@ki_young_ju) May 10, 2025<\/a><\/p>\n<\/blockquote>\n