What does Michael Saylor think about Bitcoin right now?
Michael Saylor is the founder and CEO of the business intelligence company Microstrategy (MSTR 2.32%). He is also known to be one of Bitcoin sine (BTC 2.92%) most vocal supporters.
He believes so much in Bitcoin that MicroStrategy as a company owns almost 130,000 bitcoins.
The company even took out a Bitcoin-backed loan to buy $ 190 million more in Bitcoin. To say that the Bitcoin evangelist has put his money where his mouth is would be an understatement.
What Saylor says
So, with the recent fall in the price of Bitcoin and the cryptocurrency market in general, how does Saylor react?
In an interview with Fox Business, Saylor elaborated on his beliefs about Bitcoin and his company.
He informed listeners that MicroStrategy has taken a long-term view of Bitcoin. Therefore, the short-term oscillations are only noise.
Saylor described how Bitcoin has gone through three boom-and-bust cycles in the last two years. This is nothing new for Bitcoin, and it is a natural phenomenon for new assets to be volatile through their journey of price discovery.
He further described how this volatility is a crisis for short-term investors. But for those with a time frame of 10 years or more, Bitcoin is proving to be a “low-risk stock of value assets.”
As he precisely remarked, “It all comes down to what is your time horizon.”
Regulation is approaching
He further discussed the prospects for regulation in the years to come. He believes certain forms of regulation from the US government will be beneficial to strengthen Bitcoin.
The goal of the regulation is to help clarify exactly what Bitcoin is. Is it a commodity, security or currency? Should the SEC or CFTC oversee this regulation?
So far, these questions have not been answered.
Saylor believes that when the government issues this guide, it will allow institutional investors to follow clear and concise guidelines so that they can start using the asset.
What’s his next move?
Saylor was vocal about how the current price declines are attracting a significant amount of fear-manger and attention. Still, most people seem to forget Bitcoin’s milestones and price increases in the past.
The head of MicroStrategy emphasized that Bitcoin has increased by an average of 51% over the last five years. In the last ten years, it is up 124%. And over the last two years, it has performed ten times better than Nasdaq.
Saylor has officially bought dip with the hope that these current inflation trends will continue. In addition, in the last week of June, MicroStrategy announced that it had purchased an additional $ 10 million worth of Bitcoin. This purchase increases the balance to approximately $ 4 billion in Bitcoin.
For Saylor, the recent withdrawal is only an opportunity to buy at a lower price. By buying now, he believes he will increase profitability in the years ahead when Bitcoin is hopefully worth more. For him, it’s all about time preference. For those with a long time horizon, Saylor claims that there is no better investment than Bitcoin.
