On August 7, Michael Saylor, the executive chair and co-founder of MicroStrategy Inc. (NASDAQ: MSTR), appeared on Bloomberg Television to discuss the merits of Bitcoin as a superior option for long-term capital management. His insights were profound, emphasizing Bitcoin’s unique characteristics and its potential to revolutionize how we perceive and handle capital.
During the interview, Bloomberg Crypto co-host Sonali Basak noted that MicroStrategy had acquired an additional 169 Bitcoins for just over $11 million in July. She then asked Saylor about his reaction when Bitcoin’s price recently dipped below $50,000 during the crypto market meltdown, inquiring whether he dives in during such dips and to what extent.
Saylor highlighted that MicroStrategy’s strategy involves consistent, quarterly acquisitions of Bitcoin, independent of short-term price movements. He stressed the importance of understanding that Bitcoin’s volatility is not a flaw but an essential characteristic. This volatility generates significant credit and liquidity globally, benefiting everyone in the short term. Over the long term, this same volatility drives superior asset performance and durability. Saylor views Bitcoin’s volatility as a sign of its functionality, contrasting it with other markets that are constrained by their inherent physics and politics.
A common concern about Bitcoin is its potential to lose significant value over short periods, making it seem like an unreliable store of value. Saylor addressed this by explaining that Bitcoin’s price movements are a result of its functionality as digital capital. He argued that Bitcoin is superior to physical or financial capital because it represents a capital investment that can be held for decades without being confiscated by corporations, competitors, counterparties, or countries.
He emphasized that Bitcoin can create generational wealth for families, corporations, or countries and can be liquidated in any amount, at any time, anywhere in the world, without the need for active management or business acumen.
Saylor further discussed the psychology behind Bitcoin’s price pullbacks and the importance of understanding these movements. He emphasized that while timing the market is nearly impossible for most investors, the key is to spend time in the market. Comparing Bitcoin to prime real estate in Manhattan, Saylor explained that there is never a bad time to buy Bitcoin, much like there is never a bad time to buy desirable real estate in a top city.
Saylor said that MicroStrategy will continue to acquire Bitcoin whenever it has cash or can raise money in the capital markets, viewing it as a perpetual opportunity. This consistent acquisition strategy underscores its belief in Bitcoin’s long-term value rather than attempting to time purchases with market dips.
Featured Image via Pixabay
