Anika Begay
Earlier this week, Bitcoin, the largest cryptocurrency asset, saw a sharp decline following the Japanese stock market crash, demonstrating the volatile nature of the asset during macroeconomic turmoil. Following the recent market turmoil, Michael Saylor, co-founder and executive chairman of the popular business intelligence company, Microstrategy has taken the initiative to address growing concerns about Bitcoin’s volatility.
Michael Saylor Reports Bitcoin Volatility as a Feature, Not a Bug
MicroStrategy co-founder Michael Saylor offered his insights into Bitcoin’s volatility in a recent interview on Bloomberg Open Interest. His insights aim to comfort investors on the feasibility of using Bitcoin as a hedge against economic volatility and a store of value.
In the interview, Saylor, who is known as a cryptocurrency advocate, 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’s volatility tends to trigger massive global credit and liquidations 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 BTC They closed and paralyzed all other markets.
Discussing its potential as a store of value, Saylor emphasized the asset’s superiority over physical capital or financial capital. The MicroStrategy executive sees BTC as a better store of value because it offers financial freedom from counterparties.
He stated:
The reason it moves is because it is functional. It is digital capital and is superior to physical or financial capital. Bitcoin is a capital investment that you can hold for decades and that a company, competitor, counterparty, or country cannot take away from you.
As a result, he believes the digital asset could serve as a 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 It is of primary importance to any other long-term capital management in the world, despite its volatility.
Any time is right to invest in BTC
When asked about the right time to buy BTC, Michael Saylor He said there is never a wrong time to acquire the asset, comparing it to a real estate investment in Manhattan. He also highlighted MicroStrategy’s BTC investment strategy, noting that the company generally buys Bitcoin whenever the opportunity arises and sufficient capital has been raised.
While Saylor believes there is no perfect time to buy BTC, he stressed the importance of understanding the seasons and market trends to navigate the cryptocurrency’s price fluctuations. As investors navigate these volatile times, Saylor’s comments offer a key perspective on Bitcoin’s long-term value.
Featured image from YouTube, chart from Tradingview.com
