Bitcoin (BTC) has fallen about 70% from its all-time high in November, dragging with it the rest of the markets. The markets responded positively to yesterday’s interest rate hike by the Fed, but the Fear & Greed index remains in “extreme fear”. Despite all that, MicroStrategy CEO, Michael Saylorsays that Bitcoin is still the best store of value in the world, adding:
I can’t think of a better idea.
“No one lost money invested in Bitcoin for four years”
In an interview Wednesday with CNBC’s Squawk On The Street, Saylor notes that Bitcoin’s four-year simple moving average (SMA) is $21,685.
“No one has lost money investing in Bitcoin for four years,” he says. He also explains that BTC has short-term risk, but no long-term risk. With current prices around $21K ($21,845 at time of writing), Saylor says the digital asset is definitely “for sale”.
MicroStrategy owns 129,218 BTC, which it purchased at an average price of $30,700 (a total of approximately $4 billion). Currently, this makes it the largest publicly traded company to own such an amount of cryptocurrency.
As Bitcoin neared the $20K mark, concerns about liquidations and bankruptcy of cryptocurrency-invested or crypto-based companies grew. The Celsius DeFi signature and hedge fund Three Arrows are among those on the verge of such developments.
Saylor, however, says the business intelligence firm is not at risk of a margin call on its overcollateralized Bitcoin loan. He reiterated it in yesterday’s interview. MicroStrategy’s loans were taken out before interest rate hikes or are due several years from now, he says. In all respects, Saylor proves that MicroStrategy is immune to the cryptocurrency crash. Anyone who says otherwise is branded a troll.
All other assets are playable, Bitcoin being an exception.
Bitcoin, he says, is scarce, backed by the world’s most secure network, and beyond corporate or nation-state attacks. Comparatively, gold, silver, oil, Acorn and real estate can be played. Here, he points to the news that Uganda discovered recently 31 million tons of gold ore. This, he says, will double the supply of all the gold mined in the history of man.
Differently, BTC is bound to grow in value as many want to put their money into something that doesn’t lose value. He adds that his investment in the digital asset is less than 1 percent of the total. Therefore, there are many others who see the long-term potential that BTC has and are putting their money into it. It concludes with the following parting shot:
Nothing else in the world satisfies that need.
Meanwhile, regulators are still trying to regulate the crypto industry. More recently, the cryptocurrency regulation bill Lummis-Gillibrand, a proposal to which Saylor and other pro-crypto politicians contributed.