Post
Topic
Board Speculation
Merits 3 from 3 users
Re: Did I do the right thing? I bought shares of MicroStrategy.
by
fillippone
on 25/08/2021, 10:07:11 UTC
⭐ Merited by vapourminer (1) ,Poker Player (1) ,Coin-1 (1)
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Oh man, I think it's a terrible idea.

Of course, the best is to buy the orange coin itself and hodl your private keys.
The second best is to buy the orange coin and make some professional custodian hodl your keys.
The third best is but some structured product that efficiently tracks the price of bitcoin. Something like GBTC, but better. I don't know exactly where are you from, but something like BTCE (learn more here: ETC Group to launch bitcoin ETP on Deutsche Boerse).
The fourth best is GBTC, now trading at a hefty discount on the secondary market.
The fifth best is buying something vaguely related to BTC; as MSTR.

Where does this chart come from? Adding complexity levels. As @suchmoon suggested. Going down from the simple, direct buy, to the fifth, you are adding layers of unnecessary complexity. All those complexities come at an unnecessary cost, and those costs are positively correlated with risks, in a weird subpar way.
MSTR is not an investment vehicle, you are basically trusting Micheal Saylor (who I reckon has been adamant on his bitcoin choices now, but has done questionable things in the past) about his investment plan. But a lot of things can go wrong for MicroStrategy, the firm, and impact your BTC exposure.

I think I made similar points on my thread in the past:

MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’

You should have read more carefully!


Having said that, hope the best for you and your investment!