First time bear market? Advice from Bitcoin bull Michael Saylor
First time bear market? It’s also the first Bitcoin (BTC) bear market for Michael Saylor, one of the world’s biggest Bitcoin bulls.
Chairman of one of the world’s largest pro-Bitcoin companies, Saylor took a moment out of his busy schedule at the Los Angeles Pacific Bitcoin Conference to speak with Cointelegraph. Crucially, Saylor told Cointelegraph that when it comes to Bitcoin, “you have to take a long-term perspective.”
“If you buy [Bitcoin] and you have less than a four year time horizon, you are just speculating on that. And once you have a time horizon of more than four years, then the obvious thing is your dollar cost averaging.”
Dollar cost averaging is a way to reduce exposure to the volatility of an investment. Saylor continued, “You buy the asset that you want to hold for a decade or longer, which is the long-term store of value.”
At 130,000 BTC, MicroStrategy owns 0.62% of the total supply of Bitcoin, as total Bitcoin mining is capped at 21 million. MicroStrategy’s entry price is roughly $30,639 per BTC, meaning the tech group’s total investment is substantially underwater – should they be sold for dollars.
However, Saylor is not convinced about the loss – on paper – of billions of dollars, saying: “Don’t get caught up and watch the price day to day, week to week.”
The billionaire compares valuing Bitcoin to valuing a home. He joked that “if you bought a house and every time you went to a party, you got drunk, and then at 11 p.m. or midnight, you went up and said, ‘How much do you want to pay for my house? I want to sell you my whole house right now.’ Someone might say, ‘Well, I’m not really in the mood to buy a house. I’ll give you half of what you paid for it,’ and then you go home dejected and say, ‘I’ve lost all my money. ‘»
Related: Bitcoin May Need $1B More On-Chain Losses Before New BTC Price Bottom
Avoid that anxiety, he advised, and if you really need the money in the next 12 months, it’s not investable capital; instead, Saylor explained, “It’s working capital.”
“A logical model is that if you live in Argentina, you hold pesos for a month or two, you hold dollars for a year or two. You hold Bitcoin for a decade or two. And when you think about it in those frequencies and time frames , it all starts to make sense.”
Finally, as Saylor and Binance CEO Changpeng Zhao suggested, take care of your Bitcoin. In light of another crypto exchange disappearing with its customers’ funds, taking over Bitcoin is the only way to secure property that cannot be confiscated.
