There’s a valuable lesson in Michael Saylor's transformation on Bitcoin, though it may not be what you expect.

Once a vocal skeptic, Saylor’s perspective shifted as prices rose, revealing a threshold where even staunch critics can become full believers. This phenomenon shows that everyone has a price point at which Bitcoin’s allure becomes undeniable.

Saylor's journey from skeptic to Bitcoin powerhouse exemplifies this shift, and he’s certainly not alone— he followed many others, and many more will follow him. It’s just a matter of price – not time.

Saylor’s shift in perspective on Bitcoin offers an insightful lesson. In 2013, he famously dismissed Bitcoin, saying that "its days are numbered" and showed little interest at $700 per BTC. Yet by 2020, he’d reversed course, leading MicroStrategy to invest at an average price of $11,650 per BTC.

Since then, his company has acquired over $14 billion worth of Bitcoin, making MicroStrategy a key enabler and advocate during the last cycle.

During the bear market, as Bitcoin dropped below $20,000—well below MicroStrategy’s average acquisition price near $30,000—speculation arose about potential forced liquidations.

However, Saylor held firm, and as of now, MicroStrategy has delivered the best returns of any S&P 500 company since its first Bitcoin purchase in August 2020, surpassing NVIDIA.

The takeaway isn’t simply that Saylor bought and held Bitcoin; every investor has a price threshold where they decide to embrace it. As prices climb, Bitcoin gains legitimacy and attracts new believers.

Saylor was among the most prominent advocates during the 2021 Bitcoin cycle, but as prices surged, a new heavyweight stepped into the spotlight. Larry Fink, CEO of BlackRock, had once dismissed Bitcoin as an “index of money laundering” in October 2017, when it was priced at $5,650. Yet, as Bitcoin's price climbed and demand grew, Fink’s stance shifted, with BlackRock announcing plans to offer Bitcoin ETFs to clients at $25,000 six years later, in June 2023.

In economics, this phenomenon is known as the “Veblen effect,” named after economist Thorstein Veblen. Unlike typical products, demand for a Veblen good increases as its price rises. I remember reading about Veblen's economic theories back in high school.

Bitcoin holds different meanings for different people, embodying many uniquely human traits—storytelling is one of them. We may not fully understand what Bitcoin is or what role it will ultimately play, and perhaps the technology that unlocks its true potential hasn’t even been invented yet.

What’s clear, however, is that Bitcoin defies the gravity of classical economic theory, where higher prices usually deter demand. Through the Veblen effect, Bitcoin stands apart, attracting more believers as its price climbs.

Everyone has their tipping point for Bitcoin.

For Michel Saylor, it was $11,650; for Larry Fink, $25,000. What’s your price—the point where you embrace Bitcoin, or will?

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