Bitcoin has become a symbol of risky financial moves and crazy market changes. Michael Saylor, Chairman of MicroStrategy, knows more about this than anyone else.

Bitcoin’s value dropped by 15% on August 5, 2024. This made financial experts and doubters question whether it could be used as a safety net in times of economic trouble. Even though things have been up and down, Saylor’s passionate support for Bitcoin remains strong, highlighting its important role in global banking.

After falling into the oversold level at the beginning of August, BTC has made an impressive recovery and is fluctuating within the close range of the important $60K mark.

Traditional Finance Against Bitcoin’s Volatility

In their criticism of Bitcoin, Schiff and Warren Buffett drew parallels to more conventional assets like gold, reasoning that BTC cannot be trusted as a store of value given its extreme volatility. Some people say that such instability makes it more like a risky bet than a safe investment.

Bitcoin is very volatile compared to traditional investments, so some people don’t think it should be called Gold 2.0 or a safe way to safeguard their asset’s value. So, even though Bitcoin is becoming increasingly prevalent, many people still see it as a risky investment or even a gamble. 

Contrarily, prominent Bitcoin advocate and MicroStrategy CEO Michael Saylor is certain that Bitcoin is both a great investment and the future of finance, suggesting in a recent interview that it may be even better than gold.

In defense of his argument, he stated that BTC is purely a financial asset. It doesn’t weigh anything. Because of this, it can be moved at light speed. There is no authority over it. Gold has to be stored in a vault in either New York or London. A bank, a competitor, or the government controls the vault.

There is no way that you could quickly move $1 billion worth of gold to the opposite side of the world. So long as there is mass and location, the asset might be impaired.

If you were to invest $100 million in California real estate, the value of that property would be subject to regulation by the state’s governor. Same with putting it in a vault. Political events and regulatory interventions can hurt the asset’s value over time.

Vitality, not Volatility

His recent X post challenged the idea that BTC’s volatility is a downside to the asset. Saylor shared a graph that showed how MicroStrategy’s MSTR shares went through the roof after the company started using Bitcoin several years ago.

The irony is that Bitcoin’s value only increased by 408% throughout that period. Just to give you an idea, the S&P 500, which is the main measure of the U.S. stock market, has only gone up 59% since 2020.

With the picture was the phrase “Volatility is Vitality,” which emphasized Saylor’s view that BTC’s volatility is an upside or a “feature,” not a downside or a “bug.”

Saylor thinks that the wild fluctuations of BTC are the “price you pay” for the unmatched freedom and liquidity it provides. He makes it clear what he thinks: volatility is not just a problem; it’s an important part of how cryptocurrencies are.

During the interview, the host pointed out that assets like gold don’t struggle with a 30% correction in a single day, which can rob people of their sleep if they invest all their savings in such assets.

In response, Saylor said, in his opinion, that quarter after quarter, these corrections are getting smaller. The crypto market is getting more stable as more big businesses join in, something that has happened often in the past 12 months.

Microstrategy’s BTC Acquisition & Peter Schiff Skepticism

To support his claim, his company recently added 11.9K to its massive BTC portfolio, almost touching $15 billion worth of the cryptocurrency. With such a move, the company has become the biggest public corporate owner of BTC.

But not everyone is as excited about Bitcoin as Saylor is. Even the renowned financial analyst Peter Schiff is doubtful about Bitcoin’s legitimacy. Schiff recently talked about Bitcoin on YouTube and asked if it has any real value.

In response, he said that while he keeps an open mind, he is also “smart.”

Bitcoin’s future is still unknown. Since the RSI is yet to cement its position around the neutral line, it’s not clear if Bitcoin will maintain its momentum above $60K or keep running into support before a possible bull run. Bollinger Bands, on the other hand, are getting wider, which could mean that volatility is rising and a bullish shift is coming soon.

A lot of people who follow the market said that Bitcoin’s recent problems were a sign of bigger problems in standard finance. According to Saylor’s strong argument, traditional banking doesn’t work well because it only serves 19% of the economy and only 10% of the world. In contrast, Bitcoin stands as an all-inclusive solution. This thought-provoking language encourages investors to reevaluate their views on the challenges and opportunities presented by the market.

The Lingering Bitcoin Question Mark

Saylor’s case is based on the idea that volatility is a stepping stone to higher price points, not a slippery slope. Many people in the cryptocurrency community agree with this point of view. They see Bitcoin as a novel sort of asset that can help diversify portfolios and has an uneven risk-reward ratio. More people are starting to accept cryptocurrencies, which supports the idea that Bitcoin’s instability is a sign of its financial well-being. This is especially true for new and major players looking for substantial gains during a time of record-low yields.

There is still a lot of disagreement about Bitcoin’s place in the banking world. Some well-known financial experts are still not sure if Bitcoin is useful because of its volatility, but more and more institutions are starting to use it, and supporters like Michael Saylor are making strong cases for it. Bitcoin may eventually find a place in diverse investment plans. As this digital asset keeps changing, people are still talking a lot about how important it will be in the future of the global banking system. 

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