While MicroStrategy continues to invest in Bitcoin, now with a new private offering worth $400 million, investors are wondering why CEO Michael Saylor has no interest in Ethereum 2.0.
After all, fundamental analysis shows that ETH2 may be much more than just a cryptocurrency. Will we see institutional interest in the near future or does ‘smart money’ only care about digital gold?
Following the company’s announcement yesterday, Digital Currency Group founder Barry Silbert sparked a discussion on Twitter about Ethereum.
Seeing that MicroStrategy has no intention of investing in the leading altcoin, Silbert asked the community who may be ‘the MicroStrategy of Ethereum.’ While most have replied jokingly, some have referred to ConsenSys as the MicroStrategy of ETH.
MicroStrategy and its CEO Michael Saylor are currently the most famous names in the cryptocurrency sector. The firm’s numerous Bitcoin investments have mainly contributed to the fame. At the time of writing, the company owns a total of 40,000 BTC which equals $756 million.
Yesterday, Saylor announced yet another investment worth $400 million which is still to be approved. If passed, the company will collect $400 million in convertible senior notes and use it to buy Bitcoin.
With such a strong focus on Bitcoin, why has MicroStrategy not invested in Ethereum as well? Based on previous statements and interviews with Michael Saylor, we can conclude that his reluctance is based on the ultimate goal of the investment.
Bitcoin is limited in design and comes with a maximum supply of 21 million coins. Because of that, Saylor views it as a great hedge against the legacy financial market.
If protecting the company’s value is the only reason for the investment, then Ethereum would be an incompatible alternative given its unlimited supply.
Will Ethereum 2.0 change the opinion of MicroStrategy?
But would the situation between MicroStrategy and ETH be any different taking in mind the recently launched Ethereum 2.0? As Defiye previously reported, a researcher from Messari concluded that Ethereum 2.0 represents an entirely different network that makes ETH one of the most unique assets in crypto. The firm’s researcher Ryan Watkins believes that the digital currency is not only a store of value, but a capital asset and commodity as well.
Watkins argues that the new network is much more than what most investors believe, describing it as a decentralized superstate economy supported by real demand. If true, it would make more sense for institutional investors and corporations to invest in Ethereum rather than Bitcoin.
At its current state, Ethereum is already the leading ecosystem for smart contracts. All applications and platforms today rely on smart contracts. On that account, it is impossible to imagine a crypto sector or even the blockchain industry itself without Ethereum.
While MicroStrategy may not understand the future that Ethereum 2.0 proposes, there are in fact other notable figures that do. This list includes Joseph Lubin, the CEO of Consensys.
ConsenSys is a blockchain technology solutions company that has developed numerous applications and platforms that improve Ethereum. Partnered with leading organizations and companies such as Amazon, Microsoft, EY, and many others, ConsenSys represents a leading force in the market that seeks to improve the smart contracts ecosystem.
With that in mind, Barry Silbert and all other investors should definitely consider ConsenSys to be the MicroStrategy of Ethereum. The company may have not invested money like its counterpart, but it has spent all its time and power.