MicroStrategy CEO Michael Saylor spoke out on bitcoin, saying that it is more suitable not for trading, but for long-term investments.
Michael Saylor thinksthat most people misunderstand the concept of bitcoin, worrying about its volatility. In his opinion, the depreciation of the first cryptocurrency is a temporary phenomenon, and people should understand how difficult it will be to create something better than bitcoin.
The BTC rate sank heavily in May, which was facilitated by the deteriorating macroeconomic situation and the fiasco of the Terra project, which left a negative “imprint” on stablecoins. Combined, these factors caused Bitcoin to fall below $30,000, hitting its lowest level in 18 months. Many analysts are talking about the onset of “crypto winter”, but Sailor is not sure about this:
“I don’t know if this is a bear market or not, but if it is, then in the last 24 months we have already had three of them.”
He recalled the situations when in April 2021 the BTC rate rose to $60,000, and in July 2021 it was already at the level of about $31,000. In November 2021, Bitcoin jumped again, reaching an all-time high of $69,000.
Saylor admits that people who have invested at least $100 in cryptocurrencies can consider themselves investors. However, Saylor is convinced that those who invest in bitcoin in small amounts have nothing to say about investments, and if people focus on the charts, then they are “guessing on coffee grounds.”
He added that he is not keen on chasing short-term profits, but prefers to invest in bitcoin for long-term storage. Despite the collapse of UST and the depletion of Terra’s bitcoin reserves, Saylor argues that the first cryptocurrency remains a valuable reserve asset.
“I think it all depends on the size of the leverage. By owning $1 billion worth of bitcoins and issuing $50 million worth of stablecoins, the risks can be significantly reduced. So using bitcoin as a reserve asset makes sense,” says Saylor.
Earlier, the CEO of MicroStrategy called Bitcoin the most scarce and reliable asset in this unstable world, as well as the best hedge against inflation. In his opinion, bitcoin is more reliable than other cryptocurrencies, stocks or real estate.
Source: Bits
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