MicroStrategy CEO on Why Bitcoin is the Best Investment
Michael Saylor, CEO of MicroStrategy, explained what prompted his company to provide its capital investment with Bitcoin, rather than other assets that might seem more profitable and real.
Bitcoin as the best mean of saving money
MicroStrategy is among the first traditional financial corporations to invest in BTC as a means of saving, leading the way as institutional investment poured into the crypto asset last year. Speaking at Binance Blockchain Week, MicroStrategy CEO Michael Saylor admitted that in February 2020, he was still relatively clueless about Bitcoin’s potential and may have dismissed the cryptocurrency as “some nasty cyber-digital cryptocurrency”.
However, his views have changed, and Saylor now claims that he saw Bitcoin as a more convincing means of saving than gold. When considering which assets to support to minimize the potential loss of about 15% of the shareholder value on its cash balance per year, the company found that BTC provided the best return among the extensive list of assets the firm considered-government debt, stocks, derivatives, real estate, and precious metals. Saylor told me:
“The profit from gold did not look as attractive as Bitcoin. In the end, we found a cryptocurrency, because, in fact, in the cryptocurrency world, you can create a digital world, and Bitcoin is digital gold»
He added:
“And so, if you are looking for a means of saving with non-fiat derivatives in an inflationary environment, it makes sense that you would opt for BTC as digital gold.”
Why Cryptocurrency Volatility Doesn’t Bother MicroStrategy
When asked if Bitcoin’s volatility is a concern, the CEO pointed out that MicroStrategy’s investment plan is to hold the cryptocurrency on a long-term basis. Thus, short-term fluctuations did not cause them concern, since her goal was not to trade daily, but to preserve the crypto asset in the long term:
“We’re making a 10-year investment, and if you look at Bitcoin for 10 years, it’s not volatile at all – it’s just growing.”
Saylor explained that in any case, in order for an asset to grow in value, it must undergo some volatility. However, not investing is even riskier than owning a volatile asset, as Saylor said:
“If we wanted to avoid instability, we could keep the money, but we would be 90% sure that we would lose 75% of its value in 10 years. This is the price of stability. Instability is the price you pay to gain recognition.”
Currently, MicroStrategy stores a total of 70,470 BTC, which corresponds to an estimate of more than $ 2 billion, taking into account the current value of Bitcoin.
Saylor’s sentiment regarding the king of cryptocurrencies as an ideal hedge asset is shared by many crypto bulls who turn to social media to make predictions about the future price of the cryptocurrency.
As the potential of Bitcoin is still growing and being revealed on a daily basis, many have taken it upon themselves to tell others about its value. Well-known bitcoin bull Anthony Pompliano said, ” Bitcoin has really exposed those who are open-minded and who believe that their existence is based on defending the status quo.”