Michael Saylor, founder of MicroStrategy, who has aggressively swept up Bitcoin, discussed the volatility of the Bitcoin market and the impact of Wall Street giants entering the market in an interview on 12/30. Saylor stated that market freedom is the most beautiful quality of Bitcoin.
Market volatility is panic or manipulation.
Saylor pointed out in the interview that the Bitcoin market often experiences extreme volatility on weekends or during non-major trading hours, possibly due to certain wealthy whales taking actions contrary to market expectations. He mentioned, 'When prices suddenly surge or plummet when they should be stable, it may be due to some individuals panicking or adopting specific strategies different from most market participants.'
Saylor gave an example that some investors may mistakenly trust false information, such as listening to an expert's advice or misinformation, and buy or sell large amounts of Bitcoin in an irrational state, but the market will ultimately make these people pay the price.
The high volatility of Bitcoin and the freedom of leverage.
Saylor emphasized that the Bitcoin market is global and can be traded 24/7 without interruption, which is different from traditional financial markets. He added that Bitcoin trading allows for leverage of up to 50 times or even 100 times, far exceeding the 2 times leverage limit of traditional financial markets on Wall Street.
Saylor believes that the 'extreme freedom' characteristic of the Bitcoin market allows capital to flow in and out quickly. It sounds quite attractive, but volatility and risk also significantly increase. 'In traditional financial markets, you can't sell billions of dollars of assets immediately on a Saturday night due to a piece of fake news. But in the Bitcoin market, you can sell in just one minute,' Saylor described.
Manipulation or a necessary process of the free market?
Regarding the issue of 'market manipulation,' Saylor believes that the trading behavior of market participants is a manifestation of freedom rather than mere manipulation. He stated, 'Some investors sell in the morning and buy back in the afternoon; this may seem like manipulation to some critics, but in reality, it provides liquidity to the market while compressing the bid-ask spread.'
Saylor further stated that the Bitcoin market is like a rapidly spinning top; on the surface, it appears quite chaotic, but the underlying trading fundamentals are stable. 'This kind of volatility is actually a sign of a healthy market operation because it rewards correct investment behavior while naturally eliminating incorrect behavior.'
The ultimate meaning of the free market.
Saylor concluded that while the volatility of the Bitcoin market has raised considerable controversy, its essence of 'freedom' allows every participant to trade freely on a global scale. Whether making rational decisions or engaging in irrational behavior, the market ultimately self-corrects. 'Bitcoin may be the most free and fair market in the world, where interested investors can freely choose how to act, even at the cost of making foolish mistakes; that is the essence of a free market.'
Regarding how the Bitcoin market will develop in the future, Saylor believes that the volatility of Bitcoin will not disappear, nor does it need to disappear, because that is precisely what makes it attractive and is at the core value of a free market.
(MicroStrategy buys 2,138 more Bitcoins! MicroStrategy's fourth-quarter and annual BTC investment returns are impressive.)
This article features MicroStrategy founder Saylor: Don't worry about Wall Street giants entering Bitcoin; 'freedom' is the most beautiful quality of Bitcoin. Originally appeared in Chain News ABMedia.
