Wednesday (June 22) Michael J. Saylor, Founder, Chairman and CEO of Nasdaq-Listed Business Intelligence MicroStrategy Inc. (NASDAQ: MSTR), shared his thoughts on crypto space in general and Bitcoin in particular.
It is worth remembering that MicroStrategy announced on 11.8.2020 a Press release that it had “purchased 21,454 bitcoins for a total purchase price of $ 250 million” for use as a “primary state reserve fund.”
Saylor said at the time:
“Our decision to invest in Bitcoin at this time was due in part to a combination of macro factors affecting the economic and business environment that we believe will create long-term risks to our corporate finance program – risks that should be addressed proactively.“
Since then, MicroStrategy has continued to raise Bitcoin and its CEO has become one of Bitcoin’s loudest advocates. MicroStrategy’s latest $ BTC acquisition, which Saylor tweeted on April 5, means the company now owns about 129,218 bitcoins, “acquired for $ ~ 3.97 billion at an average price of $ 30,700 per bitcoin.”
Saylor’s latest comment on Bitcoin was made yesterday in a conversation with CNN International’s anchor and correspondent Julia Chatterley.
Chatterly started by asking Saylor if Bitcoin could break.
“We are here for the long term. Bitcoin will take us all longer. I’m pretty sure of that.“
He then asked if Bitcoin needed cryptocurrency to regulate to rise again.
“Yes, I think it is It is clear that people are confused and regulation is constructive because clarity helps the market to mature. People are puzzled about what is currency, what is a commodity, what is a security, what are tokens.
“There are 19,000 crypts. I think we can see in the cryptocurrency that merchants and wild crypto banks have taken advantage of the average investor, and when regulators come in and clear up this confusion and introduce traffic rules, it’s good for mainstream investors.
“It will be good for businesses. It catapults industry entrepreneurship from the offshore area, whatever goes into the institutional mature asset class.“
Chatterly then wanted to know if private investors are currently too much risk investing in the cryptocurrency market.
Saylor said to him:
“Well, I think the challenge is, if you wait a decade for everything to work out, the price of Bitcoin is 10 or 100 X higher than this right now. So you have to choose whether you want to come in knowing that there are about a dozen things that mature in an asset class and make it more transparent, or you want to wait for all those things to happen and then pay a much higher price when it is.“
Faber began by asking MicroStrategy’s CEO what he thinks of MicroStrategy’s nearly $ 4 billion investment in BTC, given the current bear market (where BTC has fallen as low as $ 20,116 from an all-time high of about $ 69,044, which it achieved on November 10, 2021 ).
“I think it has been positive. We tested our strategy against all other options. If you move the clock back to August 10, 2020, when we started this journey, Bitcoin performed 10 times better than anything else. Gold has fallen 10 percent. The Nasdaq is flat. Bitcoin has risen 86% of the time. In any term, two years, four years, eight years, Bitcoin is the best performing asset. I can’t come up with a better idea...
“If you think of Bitcoin, if your time horizon is one month, it looks like an unstable level of risk, but if your time horizon is 10 years, it looks like a risk pool of valuables. The crossing point is therefore four years. No one has ever lost money investing in Bitcoin in four years.
“And if you want to replace the book value of the Bitcoin network, that would be a simple moving average for four years. Bitcoin’s simple moving average over four years is about $ 21,685. Bitcoin has only touched this point a couple of times in its history and they have always been great buying opportunities.“
Santoli asked what Saylor is telling people who bought Bitcoin at a margin after listening to Saylor and are now in a “deeply negative position.”
“See, if your time horizon is less than four years, you’re a trader, and I don’t think you should trade anything unless you’re a professional, you do it for your job. If your timer horizon is more than four years, you can reasonably call yourself an investor, and the time horizon for Bitcoin savers or maximalists is 10 years or longer.
“So my advice to anyone investing in Bitcoin: unless you’re a professional fast trader with proprietary software, you should keep it for at least four years, and if you want to focus on something, focus on four years, a simple moving average. It prevents you from giving yourself anxiety, and it helps you understand where we are during the life of the property.“
h/t – CryptoGlobe