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MicroStrategy Co-founder Michael Saylor Deems Bitcoin Most Trustworthy Crypto

Published by
Nonhlanhla P Dube
  • MicroStrategy has progressively built its Bitcoin position up to 140,000 BTC over the past two and a half years, and the company can survive the volatility and do extremely well when Bitcoin recovers.
  • The reasons behind Bitcoin’s recovery include macroeconomic concern about inflation, loss of faith in the banking system, and adoption of Bitcoin as people are unable to instill trust in other cryptocurrencies.
  • The failure of banks, crypto crackdown, and shutting down of on-ramps to crypto have led people to exit other positions and trade all their crypto assets for Bitcoin, making it the most trustworthy crypto asset.

Michael Saylor, the executive chairman and co-founder of MicroStrategy, recently shared his views on Bitcoin and why he believes it is the most trustworthy crypto asset that deserves to be held onto. In a discussion with Morgan Brennan, co-anchor of CNBC’s Closing Bell Overtime, Saylor highlighted that MicroStrategy has been progressively building its Bitcoin position up to 140,000 BTC over the past two and a half years, with the company suffering losses when Bitcoin traded from $66,000 all the way down to $16,000.

Despite the recent volatility, Saylor reiterated the importance of holding onto Bitcoin, calling it a “digital scarcity” that has been moving up by an average of 50% per year over the last three years. He added that MicroStrategy has conditioned its shareholders and bondholders to understand that they are long-term hodlers and that everyone is aligned with the interest of the company.

Saylor believes that the recent recovery of Bitcoin, which has increased by over 70% since the year started, is due to macroeconomic concerns about inflation. He explained that inflation makes people lose confidence in fiat currencies and that Bitcoin, as a currency not valued on cash flows but on digital scarcity, is an attractive alternative.

Furthermore, Saylor discussed the recent failures of banks like Silicon Valley Bank and First Republic Bank, which have resulted in people in the western world losing faith in the banking system. He argued that Bitcoin, as a bank in cyberspace run by incorruptible software, is an attractive alternative.

In addition to these factors, Saylor pointed out that the crackdown on crypto has led to a migration of capital from crypto ecosystems into Bitcoin. He praised Silvergate Bank for being able to return all deposits without being seized by regulators, and noted that the increase in interest rates from almost nothing to 5% is largely responsible for the difficulties that the banking sector has undergone.

When asked about the impact of banks like Signature Bank being reclaimed by another bank, Saylor argued that for those holding Bitcoin, this wouldn’t make a big difference. However, he believes that the shutdown of on-ramps to crypto will lead people to exit certain stablecoins, crypto exchanges, or crypto asset securities, and trade them for Bitcoin instead.

Overall, Saylor believes that Bitcoin is the most trustworthy crypto asset and that its recent recovery is bullish. In South Africa, where inflation has been a concern in recent years, the adoption of Bitcoin as an alternative currency could be particularly appealing. As people lose faith in traditional banking systems and seek alternative investment opportunities, Bitcoin’s digital scarcity and decentralization may make it an attractive option.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube
Tags: Bitcoin

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