SNEAK PEEK
- Bitcoin is a digital scarcity that must be held on to.
- Losses in fiat currencies, the banking system, and competing assets have led to Bitcoin adoption.
- Things are looking bullish for Bitcoin, which is the most trustworthy crypto.
Executive chairman and co-founder of MicroStrategy, Michael Saylor, recently shared his take on Bitcoin and why it is a crypto that deserves to be held onto. The discussion with co-anchor of CNBC’s Closing Bell Overtime, Morgan Brennan, was shared by Saylor on his Twitter account.
#Bitcoin adoption is being driven by the progressive global loss of confidence in fiat currencies, conventional banking, and competing assets. I enjoyed discussing $MSTR and the outlook for $BTC with @MorganLBrennan today on @CNBCOvertime.pic.twitter.com/X0jn4pyhCt
— Michael Saylor⚡️ (@saylor) May 2, 2023
MicroStrategy’s software license revenue is 23%, while its subscription service revenue is 46%. Saylor highlighted that the company progressively built its Bitcoin position up to 140,000 BTC over the past two and a half years. However, when Bitcoin traded from $66,000 all the way down to $16,000, they suffered losses.
He added that during the past 12 weeks, the Bitcoin position has traded up to a billion dollars. When it trades down, there are tax consequences, which are reversed to some extent when it trades up.
Calling the software business a “cash cow,” Saylor shared using it to pay interest on debt besides acquiring more Bitcoin. Bitcoin is the digital scarcity, as it is moving up about 50% an year on average over the last 3 years. Therefore, the real key to Bitcoin is to hold on to it.
Saylor added that they have conditioned their shareholders and bondholders to understand that they are long term hodlers. Since everybody is aligned with the interest, the company can survive the volatility and do extremely well when Bitcoin recovers.
Currently, Bitcoin has increased by over 70% since the year started, which shows its recovery. On being asked about the reasons behind the recovery, Saylor talked about the macroeconomic concern about inflation. Inflation makes people lose confidence in fiat currencies, thus making them realize that everything valued on cash flow is a currency derivative. However, Bitcoin is not valued on cash flows and is in digital scarcity.
The failure of banks like Silicon Valley Bank, First Republic Bank, etc. results in people in the western world losing a little bit of faith in the banking system. At the same time, they remember that Bitcoin is a bank in cyberspace run by incorruptible software.
The phrase “Be Your Own Bank” has emerged as an investment idea in the United States. However, it is a matter of financial survival elsewhere, and so the combination of inflation and counterparty risks with banks is driving Bitcoin adoption.
Another reason behind Bitcoin adoption is the crypto crackdown, with people unable to instill trust in crypto exchanges, crypto securities, and cryptocurrencies, which leads to the migration of capital from such crypto ecosystems into Bitcoin.
Saylor praised Silvergate Bank, as it was not seized by regulators and was able to return all the deposits. He continued that the currency situation is hard for banks that have a large portfolio of long-term bonds . Also, the increase in interest rates from almost nothing to 5% is largely responsible for the difficulties that the baking sector has undergone.
While talking about banks, Brennan was quick to ask the co-founder, with Signature Bank reclaimed by another bank, what impact it is likely to have on the banking landscape, for micro strategists, and for others in the Bitcoin space.
According to Saylor, for those who have acquired and are holding Bitcoin, this wouldn’t make a big difference. The real significance of these on-ramps to crypto being shut down is that as people lose faith in certain stablecoins, crypto exchanges, or crypto asset securities such as crypto tokens, they exit those positions. And since they are not going to withdraw their money into fiat banks, the natural trait is to trade all those crypto assets for Bitcoin and put the monetary energy into Bitcoin.
Overall, this is all bullish for Bitcoin, and when it comes to people looking for what to trust, Bitcoin is the most trustworthy crypto asset.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoAiStream. Web3 Data Intelligence. Knowledge Amplified. Access Here.
- Minting the Future w Adryenn Ashley. Access Here.
- Source: https://investorbites.com/bitcoin-is-the-most-trustworthy-crypto-theres-no-second-best-says-michael-saylor/
- :has
- :is
- :not
- $UP
- 000
- 1
- 12
- 24
- 7
- 8
- a
- Able
- About
- Account
- acquired
- acquiring
- added
- Adoption
- aligned
- All
- also
- an
- and
- Another
- ARE
- AS
- asset
- Assets
- At
- average
- Bank
- Banking
- banking system
- Banks
- BE
- behind
- being
- Bell
- besides
- BEST
- Big
- Billion
- Bit
- Bitcoin
- bitcoin adoption
- Bitcoin News
- Bonds
- built
- Bullish
- business
- by
- CAN
- capital
- Cash
- cash flow
- Center
- certain
- chairman
- closing
- Co-founder
- combination
- comes
- company
- competing
- Concern
- confidence
- Consequences
- continued
- conventional
- Counterparty
- Crackdown
- crypto
- crypto asset
- CRYPTO CRACKDOWN
- Crypto Ecosystems
- Crypto Exchanges
- CRYPTO TOKENS
- crypto-assets
- cryptocurrencies
- currencies
- Currency
- cyberspace
- Debt
- deposits
- deserves
- difference
- difficulties
- digital
- discussing
- discussion
- do
- dollars
- down
- driven
- driving
- during
- Ecosystems
- elsewhere
- emerged
- energy
- etc
- everything
- Exchanges
- Exit
- external
- extremely
- Failure
- faith
- Fiat
- fiat currencies
- financial
- First
- flow
- Flows
- For
- from
- Global
- going
- Half
- Hard
- Have
- he
- Held
- Highlighted
- his
- Hodlers
- hold
- holding
- However
- HTTPS
- i
- idea
- Impact
- in
- Increase
- increased
- inflation
- interest
- Interest Rates
- internal
- into
- investment
- IT
- ITS
- Key
- landscape
- large
- largely
- Last
- Leads
- Led
- License
- like
- likely
- little
- Long
- long-term
- looking
- lose
- losing
- loss
- losses
- Macroeconomic
- make
- MAKES
- Making
- Matter
- Michael
- Michael Saylor
- MicroStrategy
- migration
- Monetary
- money
- more
- Morgan
- most
- moving
- must
- Natural
- news
- no
- nothing
- of
- on
- or
- Others
- Outlook
- over
- own
- past
- Pay
- People
- plato
- Plato Data Intelligence
- PlatoData
- portfolio
- position
- positions
- Praised
- progressive
- progressively
- put
- Quick
- Rates
- real
- realize
- reason
- reasons
- recently
- Recovers
- recovery
- Regulators
- remember
- Republic
- responsible
- Results
- return
- revenue
- risks
- Run
- same
- Saylor
- says
- Scarcity
- Second
- sector
- Securities
- seized
- service
- shared
- Shareholders
- Shows
- Shut down
- significance
- Silicon
- Silicon Valley
- Silicon Valley Bank
- Silvergate
- SILVERGATE BANK
- since
- situation
- So
- Software
- some
- Space
- started
- States
- subscription
- such
- survival
- survive
- system
- Take
- talking
- tax
- that
- The
- their
- Them
- There.
- therefore
- These
- they
- this
- those
- time
- to
- today
- Tokens
- trade
- traded
- trades
- Trust
- trustworthy
- two
- unable
- understand
- United
- United States
- using
- Valley
- valued
- Volatility
- was
- Way..
- Weeks
- WELL
- Western
- What
- What is
- What is bitcoin
- when
- which
- while
- WHO
- why
- with
- withdraw
- world
- year
- years
- Your
- zephyrnet