$mstr (a security) is the first currency pegged to #bitcoin .. holders of Microstrategy stock form a "network state".
- a currency is :
- issued by an entity that holds valuable assets - Microstrategy holds bitcoin
- widely distributed and fully regulated - regulated by SEC.
- supply may be shrunk or diluted to meet its objectives.
- pegged to the underlying asset - $mstr assumes volatility of bitcoin. Pegging is indicative in pricing - it may or may not have technical infrastructure to enforce pegging .
- the entity is controlled by individual(s) - Microstrategy board as a proxy to Michael Saylor.