MicroStrategy CEO Michael Saylor spoke out about bitcoin, saying that it is better suited not for trading, but for investing for the long term.
Michael Saylor believes that most people misunderstand the concept of bitcoin, worrying about its volatility. In his opinion, the decline of the first cryptocurrency is a temporary phenomenon, and people should understand how difficult it will be to create something better than bitcoin.
BTC rate fell heavily in May, helped by deteriorating macroeconomic conditions and the Terra project fiasco, which left a negative “footprint” on stablcoin.
These factors combined to push bitcoin below $30,000, reaching its lowest level in 18 months. Many analysts talk about the onset of a “crypto-zima,” but Saylor is not so sure:”
I don’t know if this is a bear market or not, but if it is, we’ve had three in the last 24 months.”
He recalled situations when in April 2021, the BTC rate rose to $60,000, and in July 2021, it was already at around $31,000.
In November 2021, bitcoin jumped again, reaching an all-time high of $69,000.
Saylor admits that people who have invested at least $100 in cryptocurrencies can consider themselves investors. However, Saylor is convinced that those who invest small amounts in bitcoin have nothing to say about the investment, and if people focus on the charts, they are “guessing at coffee grounds.”
He added that he is not into chasing short-term profits, but prefers to invest in bitcoin for long-term holding. Despite the collapse of UST and the depletion of Terra’s bitcoin reserves, Saylor says the first cryptocurrency remains a valuable reserve asset.
“I think it all depends on the amount of leverage. If you own $1 billion worth of bitcoin and issue $50 million worth of Stablecoin, you can reduce your risk considerably. So using bitcoin as a backup asset makes sense,” says Saylor.