In a bold defense of Bitcoin, Michael Saylor, Chairman of MicroStrategy, has characterized the cryptocurrency's volatility as an essential aspect of its utility and liquidity. His remarks come in response to recent criticism from traditional finance (TradFi) analysts who questioned Bitcoin's effectiveness as a hedge after a significant 15% drop in its value on August 5. Saylor stated, “The volatility is the price you pay in order to create billions of dollars of credit and liquidity at your fingertips all times, everywhere, for everybody.” He further asserted that “no one who understands Bitcoin is afraid of the volatility,” emphasizing the asset's potential to revolutionize financial systems.
Saylor did not hold back in his critique of traditional finance, claiming it operates only 19% of the time for 10% of the global population, which he labeled a “2% solution.” In stark contrast, he described Bitcoin as a “100% solution,” highlighting its reliability compared to traditional exchanges like the NYSE, which recently faced trading halts due to technical glitches. “Bitcoin has been up and online for over 99% of its existence,” Saylor noted, showcasing its resilience as a financial tool.
Equating Bitcoin's potential to that of nuclear and space power, Saylor urged governments to adopt the cryptocurrency as a critical component of modern finance. His bullish stance was echoed in a recent interview where he claimed that MicroStrategy's performance has significantly improved since adopting a Bitcoin-centric strategy. Since investing in Bitcoin in 2020, the company’s stock has reportedly rallied over 1000%, outperforming its peers.
As of August, MicroStrategy holds over 226,000 BTC and plans to acquire an additional $2 billion worth. Saylor himself has invested about $1 billion in Bitcoin and remains committed to increasing his holdings. This aggressive strategy has inspired other firms to adopt similar approaches. Notably, Block Inc., founded by Jack Dorsey, and Japanese investment firm Metaplanet have embraced Bitcoin strategies, with Metaplanet recently securing ¥1 billion to expand its BTC portfolio.
MicroStrategy's stock (MSTR) has shown remarkable performance, eclipsing Bitcoin's growth over the same period. MSTR has achieved over 97% growth compared to Bitcoin's 37%. Additionally, the company executed a 10-for-1 stock split on August 8, aimed at making shares more affordable for investors. Following this split, MSTR was trading at $135, reflecting a 27% rebound, while Bitcoin's price rose by only 12% in the same timeframe.
In summary, Michael Saylor's unwavering support for Bitcoin amid volatility underscores a broader trend of institutional adoption and a shift in perception regarding digital assets. His arguments against traditional finance's limitations position Bitcoin not just as a speculative investment but as a transformative financial solution for the future.
