Bitcoin’s short-term volatility is largely irrelevant once you understand the basics of leading cryptocurrencies. And how difficult is it to create something better, according to Michael Saylor, CEO of MicroStrategy?
“Bitcoin is the absolute thing in the world of uncertainty. it’s definitely more Over 19,000 other cryptocurrencies, and it is definitely more than any stock, than owning any asset anywhere in the world,” he said in an interview with The Block last week after appearing at a virtual conference of Cryptocurrencies. CoinMarketCap’s The Capital
bet of MicroStrategy in bitcoin
Saylor software company owns This includes around 129,218 bitcoins through its affiliates, and he has become a leading contributor of the digital currency since adding it to the company’s balance sheet in August 2020.
last purchase MicroStrategy The filing, disclosed on April 5, is the acquisition of 4,167 bitcoin worth approximately $190.5 million.whileThat when bitcoin is trading at $45,714
The company held all bitcoin at an average price of $30,700 and with bitcoin trading at $29,716.37 on Sunday. As a result, Saylor’s company was at a loss for acquisitions. even if there are no plans to sell it
He said bitcoin would have to drop 95% before the company thought of doing anything.
In May, MicroStrategy’s share price It hit a 20-month low of $159.67 before recovering to close at $246.65, still down from its open of $355.68, with the firm’s bitcoin holdings falling in the red.
Bitcoin Price Drops in May Due to the turmoil of the cryptocurrency market and the wider financial market After the first crypto price crash earlier this month. and while the deteriorating macroeconomic environment Prices also fall amid Terra blockchain collapse following Stablecoin, TerraUSD (UST) failure.
“I don’t know if it’s a bear market or not. But if it’s a bear market We’ve had three markets in the last 24 months,” he told The Block, with Saylor alluding to April 2021, when prices rose to $60,000 before falling to $31,000 by July 2021, then touching. All-time high of $69,000 in November 2021.
Saylor said he doesn’t want to get bogged down by short-term prices. He added that people who are too focused on the price chart are “hypnotic”.
“If you don’t plan to hold it for four years. You’re not really an investor, you’re a trader. And my advice to traders is don’t trade. invest in it.”
Despite the collapse of TerraUSD and declining bitcoin reserves, Saylor maintains that bitcoin is a worthwhile reserve asset.
“I think it all comes from the amount of leverage. It still makes a lot of sense to use bitcoin as a reserve asset,” he said, noting that with reasonable leverage, such as owning $1 billion worth of bitcoin and issuing $50 million of stablecoins, there would be less risk. down heavily using bitcoin as a reserve asset