Why is there so much hating towards other coins? As a reminder, Saylor has been actively investing in Bitcoin since August 2020: it has invested $3.96 billion in BTC to date. Due to the recent market crash MicroStrategy has been incurring serious unrealized losses, while Saylor continues to publicly assure everyone that the company has enough financial resources to recover even from the protracted crisis.

Here are MicroStrategy’s investment figures. The $3.96 billion invested has now turned into $2.65 billion.

Largest public companies with bitcoins in hand

What altcoins are criticised for

According to Michael, Bitcoin’s collapse was triggered by a “parade of horrors” – three factors that have had a very negative effect on the price of the major cryptocurrency. The first of these is vosh trading. This problem is acute in the crypto industry, as there are no appropriate authorities to fight against it here.

MicroStrategy CEO Michael Saylor

Woosh trading is a form of market manipulation by simultaneously buying and selling an asset. In this way a large trader or company can create the false impression of high trading activity.

This leads to the next factor, which according to Saylor concerns the impact of unregulated exchanges and the market volatility they bring. The MicroStrategy executive said there is a conflict of interest for exchanges acting as market makers and token holders. Combined with fake trading and leverage, the exchanges allegedly “inflate” the market too much.

If you traded Apple shares with 20 times leverage and no restrictions on woosh trading, the asset would be much more volatile. And along with it, the Nasdaq index would be just as volatile.

MicroStrategy shares have fallen almost three times since the beginning of this year

The third factor is the availability of over 19,000 different altcoins. And they supposedly shouldn’t be considered an investment at all, Sailor is confident. Here’s his rejoinder, cited by CryptoSlate.

We have a cloud of $400 billion worth of opaque, unregistered securities traded without full and fair disclosure, all backed by a Bitcoin cross-bond.

Most likely, by “cross-collateralised”, Saylor was referring to the fact that BTC is the backbone of the entire market and its price dynamics shape the value of altcoins. That is indeed true, but to call for virtually destroying all other coins is foolishness that also goes against decentralisation. We do not consider fanatical maximalism to be good for the industry as a whole.

Most importantly, today's blockchain projects offer far more opportunities than Bitcoin does. In the case of BTC, participants can essentially only send and receive crypto. Well, based on modern networks like Avalanche and Solana, there are entire ecosystems of decentralized finance, NFT tokens, and much more. Bitcoin simply doesn't have anything like that.

The price of Bitcoin

Read also: Elon Musk reiterated his support for Dogecoin, but advised against investing in cryptocurrencies.

And while MicroStrategy is hoarding bitcoins, miners are selling them. Analysts at platform Arcane have revealed that public mining firms sold all of their coins mined in May. Previously, they sold no more than 40 per cent of the bitcoins mined in a month. The reason for the current trend is simple: the market is down and miners need to somehow compensate for the costs of maintaining crypto farms.

Volume of bitcoins sold by miners by month

Although Bitcoin’s public miners make up only 20 per cent of the cryptocurrency’s total network hash rate, their behaviour often reflects the mood of all the other players in the business. All of the world’s miners collectively own 800,000 BTC, making them among the largest “whales” in the market. Of these, public miners own 46,000 BTC, and their steep selling could lead to a further decline in the coin’s price.

CryptoQuant experts also noted a very significant increase in the number of bitcoins that miners are transferring to exchanges for further sale.

Miners’ coin inflows to exchanges

According to Cointelegraph’s sources, another indicator in the form of the hash price has fallen to its lowest level in the last 1.5 years. As a reminder, the hash price is the ratio of a miner’s income in terms of its hash rate.

Hash price chart

The hash rate itself has not yet shown a significant drop, which means most miners are still keeping their crypto farms “plugged in”.

Bitcoin hash rate

Predictions about the situation with miners don’t even need to be made, because their future strategy is very clear – if Bitcoin falls further, liquidate the remaining coins from their holdings at market prices. This process will continue until enough miners exit the market due to a serious drop in profitability. Typically, this point will be caught by the rapid drop in Bitcoin mining difficulty.


We believe Michael Saylor's stance is detrimental to the cryptocurrency industry. Certainly, there are enough useless hype projects in the niche that do it no good. However, creating massive problems for altcoins is an act of censorship that contradicts decentralisation. In addition, the Bitcoin network is too limited to present it as something universal and suitable for everyone. One would like to believe that Sailor's so-called BTC maximalism will become more moderate.