Michael Saylor's idea of destroying his Bitcoin keys upon death seems to stem from his belief in Bitcoin's deflationary nature, suggesting that permanently removing access to large holdings could increase scarcity and benefit the network
That's true but that is going to happen over time anyway, deliberately burning capital that could be used for good is stupid
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The point is the capital isn't burnt. It's distributed among all Bitcoin holders.
Once and in a diffuse manner. If everyone gets 1 cent richer it's irrelevant. But if you deploy 3,000,000,000 to build something of value that begets value perpetually.