Robert Kiyosaki Defends MicroStrategy's Bitcoin Strategy Amid Criticism
According to Finbold, Robert Kiyosaki, the investor and author of the renowned personal finance book 'Rich Dad Poor Dad,' has criticized an unnamed gold advocate for disparaging MicroStrategy's Bitcoin investment strategy. Kiyosaki referred to the critic as 'Mr. Big Mouth No Balls,' accusing him of hypocrisy for attacking Michael Saylor, the executive chairman of MicroStrategy, over the company's Bitcoin purchases while seemingly wishing the company had invested in gold instead. In a post on X dated November 23, Kiyosaki defended Saylor's decision to leverage the company's treasury to invest billions in Bitcoin, describing him as a 'genius.' Kiyosaki believes this approach has generated wealth for Saylor, his company, and its investors.
Kiyosaki, who has long advocated for gold and silver, emphasized Bitcoin as a crucial hedge against what he describes as 'fake dollars' printed by the Federal Reserve. He stated, 'I still invest in gold and silver because the real problem is our fake dollars, printed by a corrupt Central Bank...known as "The Fed" and a Treasury Department filled with bureaucrats.' Despite his criticism, Kiyosaki dismissed the debate between Bitcoin and gold, considering both asset classes as equal in their ability to protect wealth. Although Kiyosaki did not name the individual in question, it is noteworthy that economist and gold advocate Peter Schiff has been critical of Saylor's Bitcoin strategy. Schiff argues that Saylor is gambling with investors' money by investing in Bitcoin and has warned that MicroStrategy may be forced to sell its Bitcoin holdings in the event of a recession.
With Bitcoin's recent movement towards the $100,000 mark, Schiff criticized MicroStrategy in a post on X on November 22 for issuing $3 billion in convertible debt to buy more Bitcoin, labeling the strategy a 'Ponzi scheme.' He argued that MicroStrategy's reliance on selling shares and taking on debt to fund its Bitcoin purchases is unsustainable. According to Schiff, if MicroStrategy cannot sell more shares, it will be forced to sell its Bitcoin, potentially crashing the market. Despite these concerns, MicroStrategy has been one of the best-performing stocks this year, outperforming many companies and aligning with the upward trend in Bitcoin's price. There are calls for other S&P 500 companies to replicate MicroStrategy's Bitcoin plan. Some analysts argue that MicroStrategy's use of leverage to generate compounding yield on its Bitcoin holdings through repeated access to U.S. capital markets sets its stock apart from alternative Bitcoin exposure methods like spot Bitcoin ETFs. Meanwhile, MicroStrategy continues to witness increased capital inflow from major institutional firms, with notable names like Vanguard Group and Capital International Investors acquiring significant shares. As of the latest trading, MicroStrategy's stock was valued at $421.88, reflecting a gain of over 6% in 24 hours and a 515% increase in 2024. While Kiyosaki defends Saylor's Bitcoin strategy, investors are advised to remain cautious of the underlying concerns, as MicroStrategy's plan is still considered to be in its early stages despite the significant returns.
MicroStrategy's BTC-Driven Premiums Reach New Highs, Says Andrew Kang
According to Odaily, Andrew Kang, a partner at Mechanism Capital, recently shared insights on the X platform regarding MicroStrategy's financial strategy. Kang highlighted that MicroStrategy's valuation has been significantly boosted by its Bitcoin holdings, leading to a continuous rise in its premium rates. This trend has reached unprecedented levels, drawing attention and confusion from traditional financial sectors.Kang pointed out that the traditional finance industry struggles to comprehend the dynamics behind MicroStrategy's approach. The company's strategy of leveraging Bitcoin to enhance its market value is seen as unconventional and has led to a certain degree of inertia within traditional financial circles. This disconnect underscores the challenges faced by established financial institutions in adapting to the rapidly evolving landscape of cryptocurrency investments.MicroStrategy's model, which heavily relies on Bitcoin, has set a precedent that is difficult for traditional finance to grasp fully. As the company continues to capitalize on its cryptocurrency assets, it remains to be seen how traditional financial entities will respond to this innovative yet perplexing approach. Kang's observations shed light on the growing divide between traditional finance and the emerging cryptocurrency market, highlighting the need for adaptation and understanding in the face of new financial paradigms.
MicroStrategy's Bitcoin Strategy Explained By Michael Saylor
According to Odaily, Michael Saylor recently shared insights on the X platform about MicroStrategy's financial operations centered around Bitcoin. The company utilizes an Automated Market Maker (ATM) product to manage volatility. This approach involves separating Bitcoin's risk, volatility, and performance from fixed-income securities. The resulting performance is then transferred to MSTR stockholders, allowing them to benefit from Bitcoin's market dynamics.
MicroStrategy's strategy reflects a broader trend of integrating cryptocurrency into traditional financial frameworks. By leveraging Bitcoin's unique characteristics, the company aims to optimize its financial operations and provide value to its shareholders. This method highlights the evolving landscape of financial management, where digital assets play an increasingly significant role. Saylor's comments underscore the importance of innovative financial strategies in navigating the complexities of modern markets.
Grayscale Transfers 759.99 BTC Worth $69.66 Million to Unknown Address
According to Odaily, blockchain monitoring service Arkham reported that Grayscale has transferred 759.99 Bitcoin, valued at approximately $69.66 million, to an unidentified address. This transaction occurred just 15 minutes prior to the report. The movement of such a significant amount of Bitcoin has drawn attention within the cryptocurrency community, as Grayscale is known for its substantial holdings in digital assets.The transfer highlights the ongoing activity and strategic maneuvers within the cryptocurrency market, where large-scale transactions can influence market dynamics. Grayscale, a major player in the digital currency investment space, often engages in such transactions as part of its portfolio management and investment strategies. The identity of the recipient address remains unknown, adding an element of intrigue to the transaction.This development comes amid a period of heightened interest in Bitcoin and other cryptocurrencies, as investors and institutions continue to navigate the evolving landscape of digital assets. The transfer by Grayscale underscores the fluid nature of cryptocurrency markets, where significant movements can occur rapidly and with little warning. Observers will be keen to see if this transaction signals any broader strategic shifts by Grayscale or if it is part of routine asset management activities.
According to DLNews, the anticipated Bitcoin supercycle may be postponed until next year, as analysts suggest. Following a 36% surge after the US election, Bitcoin's momentum has slowed, with attention shifting from political events to monetary policy. Federal Reserve Chair Jerome Powell has expressed concerns about inflation and indicated a more gradual approach to interest rate cuts. This suggests that Bitcoin might not see another significant boost until the new year, and investors should prepare for potential volatility.Cory Klippsten, CEO of Swan Bitcoin, commented on the situation, stating that Bitcoin is in the early stages of a potential massive bull run. He warned of possible pullbacks ranging from 20% to 40% but advised against attempting to time the market peak. Powell, during the latest Federal Reserve meeting, acknowledged that while inflation has decreased from its peak, it remains a concern. Recent consumer pricing data showed a 0.2% year-over-year increase, marking the first rise in seven months, indicating persistent inflation. Additionally, strong US employment figures highlight a resilient economy, leading Powell to conclude that there is no immediate need to lower rates.The capital markets, including cryptocurrencies, reacted swiftly to Powell's hawkish remarks, which marked a shift in tone since the central bank initiated a new rate-cutting cycle in September. Following Powell's speech, the S&P 500 dropped by 1%, the NASDAQ fell by 2%, and Bitcoin experienced a 2% decline. Greg Magadini, director of derivatives at Amberdata, noted that the Federal Reserve's cautious stance on rate cuts at its December meeting turned positive news into negative market reactions.The uncertainty surrounding recent political appointments, such as Matt Gaetz for attorney general, has added to market confusion, according to Steven Lubka, head of Swan Bitcoin's institutional investment arm. Despite this, sentiment in both stock and crypto markets remains optimistic, particularly for cryptocurrencies. Carlos Guzman, an analyst at GSR, highlighted the shift from a previously hostile administration to a more crypto-friendly one under the President-elect. The choice for Treasury Secretary, potentially Kevin Warsh, is also influencing crypto investor sentiment.Guzman is monitoring the possibility of Trump fulfilling his campaign promise to establish a Bitcoin reserve for the country. Although the likelihood is considered low, it is not entirely dismissed, especially with Senator Lummis' support. If realized, this could significantly impact Bitcoin prices and potentially benefit alternative cryptocurrencies as well.
Bitcoin News Today: Michael Saylor Predicts Bitcoin Will Hit $100K, Dismisses $60K Retrace
According to Cointelegraph: MicroStrategy founder and prominent Bitcoin (BTC) advocate Michael Saylor has confidently dismissed the possibility of Bitcoin retracing to $60,000, a price level speculated by some analysts for most of 2024. Speaking to CNBC on November 14, Saylor remarked, “I don’t think it is going to $60,000, it is not going to $30,000. I think it is going to go up from here.”Bitcoin is currently trading at approximately $87,790, according to CoinMarketCap. Saylor attributes his optimism to favorable conditions for the crypto market following Donald Trump’s election victory, which he believes has “very decidedly” secured Bitcoin’s future in the United States.Planning a $100K Bitcoin Party by Year-EndSaylor is so confident in Bitcoin’s trajectory that he’s planning a New Year’s Eve party to celebrate Bitcoin surpassing $100,000. “I’m thinking it’s probably going to be New Year’s Eve at my house, so I would be surprised if we don’t go through $100,000 in November or December,” he said.Keith Alan, co-founder of Material Indicators, echoed this optimism, predicting that Bitcoin could reach $100,000 as early as November 28, potentially coinciding with Thanksgiving in the U.S.Diverging Opinions on Bitcoin’s Year-End PerformanceWhile bullish predictions dominate, CryptoQuant CEO Ki Young Ju warned that Bitcoin could end the year below $59,000, citing risks of an overheated futures market. Conversely, many traders and analysts remain confident in Bitcoin’s upward trend despite expected volatility.“Expect high volatility, more liquidations, but overall, the price trend will be to the upside making new highs,” tweeted pseudonymous trader Ash Crypto to their 1.2 million followers on November 14.Financial analyst Rajat Soni added that he focuses on Bitcoin’s long-term value rather than short-term price movements, stating, “Every buy will appreciate in purchasing power.”Strategic Bitcoin Reserve Bill: A $30 Trillion OpportunitySaylor also highlighted the potential impact of the U.S. Strategic Bitcoin Reserve Bill during the Cantor Crypto, Digital Assets & AI Infrastructure Conference on November 13. The proposed law would aim for the U.S. government to accumulate 1 million Bitcoin (BTC), roughly 5% of the total supply, over five years.Calling it the “greatest deal of the 21st Century,” Saylor estimated the bill could generate a $16 trillion benefit for the U.S. economy over 21 years, doubling to $30 trillion if expanded. However, Galaxy Digital’s Mike Novogratz expressed skepticism about President-elect Trump’s commitment to establishing the reserve, citing a “low probability” of execution.Pro-Bitcoin Policies Expected Under New AdministrationSaylor anticipates a favorable shift in U.S. crypto policy under the incoming administration, including more pro-Bitcoin regulations, a comprehensive digital assets framework, and the resolution of the "war on crypto."“The next SEC chair will have the most pivotal role in the crypto industry,” he said, expressing optimism about a brighter future for digital assets.Bitcoin (BTC) currently trades at $87,790, with market participants divided on its trajectory. While some predict a surge to $100,000 by year-end, others remain cautious of a potential retrace. As institutional and regulatory developments unfold, Bitcoin’s performance will continue to capture global attention.Read More: Bitcoin's Momentum Expected To Continue Amid Positive Market FactorsGoldman Sachs Expands Bitcoin ETF Holdings SignificantlyVanguard May Introduce Bitcoin And Ethereum ETFs By Next Year
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