The former head of MicroStrategy believes that despite the crisis of the crypto market, bitcoin has outperformed all assets in the long term and in the future the first cryptocurrency will remain reliable.
Former MicroStrategy CEO Michael Saylor said in a recent interview for Stansberry Research that cryptocurrency volatility will only affect short-term investors and public companies. Bitcoin has outperformed all stock market projects in the long run, he said.
Since MicroStrategy adopted a bitcoin-focused strategy, it has greatly outperformed the S&P 500, Nasdaq, gold, the bond index and any stock of major technology companies. Saylor added that the only asset that outperformed bitcoin during this period was MicroStrategy stock (MSTR).
Bitcoin is not suitable for everyone, he said, because many will not be able to handle its volatility.
“Investing in bitcoin should be for the long term, it should be held for four years or longer. Ideally, it’s a generational transfer of wealth. The metric that confirms this is the four-year moving average,” explained Saylor.
He added that investing in short positions is much riskier because BTC is a highly volatile asset.
Saylor believes that the events that led to the cryptocurrency’s recent collapse were caused by rising interest rates and a tightening of U.S. Federal Reserve (Fed) policy.
According to him, the catalyst was the collapse of the Terra project, which affected many cryptocurrencies. He believes that the algorithmic Stablecoin was an “unfortunate accident waiting to happen. As the former MicroStrategy head said, these events had to happen to get rid of useless investors for the industry.
“If you believe in safe money, you should sell your gold and buy bitcoins,” Saylor said.
He added that market participants are now more educated and cautious about projects that generate huge profits.
As a reminder, Michael Saylor is no longer the CEO of MicroStrategy.