MicroStrategy and the Future of Bitcoin Investment: A Look at Michael Saylor’s Strategy
MicroStrategy, a publicly-traded software company, has been the largest known holder of Bitcoin since 2020. At present, the company owns 140,000 BTC, with no signs of stopping. Michael Saylor, MicroStrategy’s board director, believes that their strategy of investing in Bitcoin will pay off in the long run. He argues that problems in the global banking system and distrust in fiat currency will shift more people towards Bitcoin and other cryptocurrencies.
Saylor: Distrust in Fiat Currency Good for Bitcoin’s Growth
Saylor recently spoke to CNBC about MicroStrategy’s quarterly results for the first three months of 2021, which showed that the company was profitable and had bought more Bitcoins. Saylor explained that the company had suffered a loss on paper when the Bitcoin price fell sharply in 2020. However, this loss has decreased significantly, and MicroStrategy has been successful in convincing investors that their investment in Bitcoin is a long-term strategy.
According to Saylor, the recent increase in Bitcoin’s value is due to the fact that more people are losing confidence in the financial system because of the high inflation rates. People are now realizing that assets that rely on cash flows are also dependent on the underlying currency, while Bitcoin is not. Saylor calls Bitcoin “digital scarcity,” emphasizing the asset’s unique properties.
Banking Crisis and Regulation Are Also Driving Forces for Bitcoin
Saylor believes that the recent banking crisis has significantly affected confidence in traditional banks, thereby driving more people to adopt Bitcoin. He notes that Bitcoin is like a bank in cyberspace, controlled by untouchable software. Saylor believes that the idea of “be your bank” has emerged as an investment idea in the United States, while in other regions, people are turning to Bitcoin as a matter of financial survival.
In addition, Saylor argues that regulations and policymakers’ scrutiny are significant factors driving Bitcoin adoption. He notes that if people lose confidence in crypto exchanges and alternative coins, they naturally migrate towards Bitcoin, seeing it as the risk-free safe haven in the cryptoworld.
The Future of Bitcoin Investment
MicroStrategy has been leading the charge in investing heavily in Bitcoin and promoting its adoption as a long-term strategy. Its success shows that institutional investors are gradually warming up to cryptocurrencies. Saylor believes that Bitcoin is the future of money, given its unique properties that could replace traditional fiat currencies. According to him, Bitcoin is the best way to maintain wealth in the long run, especially in times of financial uncertainty.
MicroStrategy’s investment in Bitcoin is a significant indication of the growing adoption of the digital asset in the financial world. The company’s success in asset management strategy shows that Bitcoin is slowly gaining mainstream acceptance. Saylor’s strategy is to create a hedge against inflation and financial crisis in the future. An increasing number of investors are recognizing its potential as a valuable asset, with unique properties that could shape the future of money.