Microsoft’s Rejection of Bitcoin Proposal Draws Crypto Community Criticism

Microsoft’s recent rejection of a shareholder proposal to invest in Bitcoin has sparked a significant backlash from the cryptocurrency community. The “Assessment of Investing in Bitcoin” proposal sought to allocate 1% of Microsoft’s total assets to Bitcoin as a hedge against inflation. Despite growing interest in cryptocurrency adoption among corporations, Microsoft’s board voted against the proposal, citing concerns over Bitcoin’s volatility. The company emphasized prioritizing stable investments for liquidity and operational funding.

Also Read: Bitcoin Price Manipulation Concerns Amid MicroStrategy and Marathon Digital’s Large Holdings

Crypto Community Reacts to Microsoft’s Conservative Stance

The decision has led to criticism from prominent figures within the crypto space, with Tron (TRX) founder Justin Sun mocking Microsoft’s move on social media and suggesting that investors should wait for Bitcoin’s price to hit $1 million before buying. His comments followed Bitcoin’s recent rally, where the digital currency surged from $85,155.11 to $103,900 over 30 days. Bitcoin’s price has seen significant volatility, recently reaching a market capitalization of $2 trillion before dipping to $1.9 trillion following a market correction.

In the crypto community, many think that Microsoft is wrong to shy away from adopting Bitcoin as it is a massive market worth missing out on. Since such market players as MicroStrategy have been actively stacking significant amounts of Bitcoins, some analysts point out that Microsoft may lag behind a rapidly changing market. Furthermore, Microsoft’s current approach differs from that of other large companies that have turned to crypto, investigated cryptocurrencies as an inflation hedge, and possibly more.

Despite the rising interest in Bitcoin from political figures, including Eric Trump, who predicts a $1 million Bitcoin price under his father’s administration, Microsoft remains cautious. The company’s focus on stable investments may serve its short-term goals but raises questions about whether it will capitalize on the long-term potential of Bitcoin as it continues to mature as an asset class.

Also Read: Coinbase Premium Surges Amidst Bitcoin’s Market Sell-Off, Indicating Strong Institutional Buying

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