The ex-head of MicroStrategy believes that despite the crisis of the crypto market, bitcoin has surpassed all assets in the long run and in the future the first cryptocurrency will retain its reliability.
Former MicroStrategy CEO Michael Saylor stated in a recent interview with Stansberry Research that the volatility of cryptocurrencies will only affect short-term investors and public companies. According to him, bitcoin has outperformed all projects in the stock market in the long run.
Since MicroStrategy adopted a bitcoin-focused strategy, it has vastly outperformed the S&P 500, Nasdaq, gold, the bond index, and any major tech stocks. Saylor added that the only asset that outperformed Bitcoin during this period was MicroStrategy (MSTR).
According to him, bitcoin is not suitable for everyone, since many will not be able to cope with its volatility.
“Bitcoin should be invested for the long term, it should be held for four years or longer. Ideally, this is the transfer of wealth from generation to generation. The metric that confirms this is a four-year moving average,” Sailor explained.
He added that investing in short positions is much more risky, since BTC is a highly volatile asset. Sailor is confident that the events that led to the recent collapse of the cryptocurrency were caused by rising interest rates and tightening the policy of the US Federal Reserve System (Fed).
According to him, the collapse of the Terra project, which affected many cryptocurrencies, served as a catalyst. He believes that the algorithmic stablecoin was “an accident waiting in the wings.” As the ex-head of MicroStrategy stated, these events had to happen in order to get rid of investors that are useless for the industry.
“If you believe in sound money, you should sell your gold and buy bitcoin,” Sailor said.
He added that market participants are now more educated and cautious about projects that bring in huge profits.
As a reminder, Sailor recently announced his transition from being the CEO of MicroStrategy to the newly created position of Executive Chairman.