Earlier this week, Bitcoin, the largest cryptocurrency asset, saw a sharp decline due to the Japanese stock market crash, demonstrating the volatile nature of the asset during macroeconomic turbulence. Following the recent market turbulence, Michael Saylor, co-founder and executive chairman of Popular business intelligence company, MicroStrategies has taken the initiative to address growing concerns about Bitcoin volatility.
Michael Saylor Sees Bitcoin Volatility as a Feature, Not a Bug
MicroStrategy co-founder Michael Saylor shared his thoughts on Bitcoin volatility in a recent post. interview on Bloomberg Open Interest. His ideas aim to reassure investors about the feasibility of using Bitcoin as a hedge against economic volatility and store of value.
In the interview, Saylor, who is well-known as a proponent of the crypto asset, reiterated his strong belief in BTC’s long-term potential despite the current volatility. Addressing the topic, Saylor noted that the first thing the industry needs to understand is that Bitcoin’s volatility is a feature, not a bug.
According to the co-founder, BTC volatility tends to trigger massive global credit and liquidation in the short term. However, in the long term, it is a superior asset in terms of performance and durability. Saylor believes that the asset is volatile because of its functionality, as the physics and politics of Bitcoin closed and paralyzed all other markets.
Discussing its potential as a store of value, Saylor highlighted the asset’s superiority over physical or financial capital. The MicroStrategy executive sees BTC as a better store of value because it offers financial freedom from counterparties.
He said:
The reason it moves is because it is functional. It is digital capital and it is superior to physical capital or financial capital. Bitcoin is a capital investment that you can hold for decades and that a company, a competitor, a counterparty or a country cannot take away from you.
As a result, he believes the digital asset could serve as generational wealth at the retail and institutional levels while also offering personal management funds. Given the decentralized nature of the currency, Saylor argues that Bitcoin is essential for any other long-term capital management in the world despite its volatility.
Investing in Bitcoin is always a good idea
When asked when is the right time to buy BTC, Michael Saylor said there is never a bad time to acquire the asset, comparing it to investing in real estate in Manhattan. He further highlighted MicroStrategy’s BTC investment strategy, noting that The company usually buys Bitcoin whenever an opportunity arises and sufficient capital has been raised.
While Saylor believes there is no perfect time to buy Bitcoin, he stressed the importance of understanding the seasons and market trends in order to navigate the crypto asset’s price fluctuations. As investors navigate these volatile times, Saylor’s statements offer a key perspective on Bitcoin’s long-term value.
Featured image from YouTube, chart from Tradingview.com
