The Michael Saylor manual, CEO of Strategy, begins replicating in various business directories. But as if it were a mouth-to-mouth story, each new interpreter adds its own turn. And that’s why what started out with Bitcoin (BTC) now ends with other Altcoins, such as Solana (Sol).
Before continuing, it is key to explain to you to understand that this manual written by Saylor is defined as the Maximalist of Bitcoiner. Strategy has been implemented from 2020 to today Aggressive Bitcoin accumulation model As a value reserve.
It consists of issuing debts through convertible bonds to increase your reserves without relying on your operating income. With the funds acquired, the strategy accumulates the currency units created by Nakamoto Atoshi. Currently, the company is on the stock market with the largest BTC in the Ministry of Finance.
However, in this new version of the Saylor manual, companies such as Development Corp (formerly Janover), Classover Holdings, Sol Strategies and Upexi have replaced BTC with Solana. And it used to be a strategy hodl In the long term, Now he tweeted with a much more complicated and dangerous bet.
In its latest report, Token Dispatch Analysts show that the main difference between BTC and SOL accumulation models is revenue generation. However, the most important thing to highlight is that these companies are in a hurry to show what they are showing to increase Solana holdings.
The company’s rush by accumulating Sol is because it seeks to make the most of the opportunities offered by Solana Red’s infrastructure. Unlike BTC, you can implement strategies such as staffing and verified operations. This will generate a certain amount of income and keep your assets liquidity in place.
Here we need to clarify the problem. Currently, people who do sunsets receive an average annual compensation of 8.3%. This attractive performance hides the structural risks of its inflation, the sixth most valuable asset in the market.
The fact that there is an inflation model means that new solar units are issued annually. This is important for investors, especially when demand does not grow enough to absorb new offers available in the market, the benefits gained by staffing are not. Considering the current inflation rate of 5.3% per year, the actual net performance per staking averages around 3%.
Some companies are actively involved in network infrastructure as validators. This is the case with Development Corp (DFDV) which was associated with the team behind Memecoin Bonk to launch a co-validator and create a liquid staking token that can be associated with the team behind MemeCoin Bonk and earn rewards without sacrificing a liquid shoot.
Therefore, companies like DFDV and SOL Strategies will configure their servers, provide Sun as their initial interest, and attract additional delegations to increase the weight within the network. This allows you to generate annual yields from 7% to 9%, earn a certain amount of income, participate in governance, and establish links within the ecosystem.
At first glance, it seems like an ideal strategy. However, there are important risks. If more companies decide to become validators, then the total shares in the network will increase and the node’s reward will be diluted. Furthermore, the operation of the verification device requires associated technical costs such as servers, power, and maintenance, which means lower revenues can make the model unfeasible from a financial standpoint.
Vacuum jump
The institutional adoption of SOL represents a vacuum leap to begin with due to the influence of the macroeconomic context on this digital asset. As Cryptootics reports, Cryptocurrency is considered a risky asset For most investors. Therefore, whenever financial speculators feel that the macroeconomic context is unstable, they choose to place their holdings in financial instruments that have low yields but produce even lower yields to price fluctuations such as treasured debt. It is worth making clear that BTC has the virtue of recovering very quickly, although it is also negatively affected by tensions at the macroeconomic or international level.
“These strategies use cheap capital. Most sunbuyers acquire funds through convertible bonds or capital lines. When liquidity is gone, and when it always occurs over time, the music comes out,” explains analysts at token dispatches.
The term “cheap capital” refers to a low interest rate environment. When this occurs, the costs of debt will also decrease, and the system will have more liquidity. This is the investor’s profits on assets that are considered risky, such as cryptocurrencies.
As many managers recreate the “Saylorization” story to earn money, the second factor is called “the risk of playing to become Michael Saylor,” but instead of accumulating BTC, they do so by betting on other digital assets such as Sol or Ethher (Eth), the native cryptocurrency of Ethereum.
This is essential to point out so far, as BTC has proven to be the most powerful long-term investment (it’s enough to just look at the performance throughout its history in the following graph). It surpasses all previous cryptocurrencies. For nothing, BTC is considered by many investors as “digital gold.” This is due to the properties shared with precious metals: decentralization and resistance to government and bank censorship.
It is also important to note that BTC has characteristics that distinguish it from Altcoins. Bitcoin definitely represents a digital shortage.
Talking about shortages refers to social and global consensus that not only limits supply to 21 million units, but also recognizes and value those restrictions. Plus I have Benefits of being the first digital asset to establish yourself as a referenceintegrating a solid user base with a reputation that gives a dominant position.
Bitconner’s Lewis Parker explains: “The reliability of the lack of Bitcoin (and its monetary policy) exists only because it is decentralized and resistant, as it has little to do with software in itself, and is a network. That is, its reliability arises from consensus, not from the code.
That’s why Parker states it Bitcoin cannot be copied because history is not replicablea true sense of decentralization and a global community that recognizes it as “original.” Its unique combination gives authentic, unrestrained value.
Third, it is worth noting that Bitcoin networks are as neutral and open as the Internet, and have no owners. Cryptocurrencies, on the other hand, are controlled by specific devices and have defined permissions and purposes. This is similar to traditional companies with market share. This means that their success depends heavily on the management and decisions of these teams.
Why is it important to point out this difference? This centralization poses additional risks such as changing governance, potential conflicts of interest, or technical vulnerabilities. To illustrate, it is worth remembering the recent internal crisis beyond the Ethereum Foundation for bad network performance and repeated sales of ETH recurring sales, as reported by encryption.
These conflicts can affect long-term investors’ trust, particularly when the network is unable to sustain sustainable growth or when it faces problems such as multiple disruptions that Solana has suffered in its history.
Michael Saylor wrote a clear and accurate manual that made today a fragmented story. There, each interpreter adds his own turn, as in the case of institutional adoption of SOL. For now it’s too early to know if it will be the next great story There is more reason to think it’s a bad copy of the original script.
Because investors often jump into a vacuum driven by euphoria, but like Jump, he can also collide with the harsh reality of risk and uncertainty.
Liability exemption: The views and opinions expressed in this article belong to the author and do not necessarily reflect those encrypted. The author’s opinions are useful and do not constitute investment recommendations or financial advice under any circumstances.
