• MicroStrategy Inc’s executive chairman Michael Saylor remains bullish on bitcoin despite its recent volatility.
• Saylor attributed the surge in BTC to inflation and bank failures that have hurt confidence in fiat currencies.
• He also noted that the crypto crackdown has established a reputation for bitcoin as a safe-haven asset.
Michael Saylor on Bitcoin
MicroStrategy Inc’s Executive Chairman Michael Saylor is still optimistic about bitcoin despite its recent volatility. Currently, it is up around 70% since the start of 2023 and has lost 7% in the last few weeks. MicroStrategy now owns 140,000 bitcoins and with its rise, it has been a great tailwind for the company as their stock MSTR has more than doubled since the start of this year.
Why is Bitcoin Price Increasing?
Saylor believes that the increasing price of bitcoin is due to the current inflation rate in US which stands at 5%, much higher than Federal Reserve’s target of 2%. Additionally, he claims that recent bank failures have also damaged people’s confidence in fiat currency leading them to invest into cryptocurrency instead. Furthermore, he stated that crypto crackdowns have made investors view bitcoin as a safe haven asset which has helped increase its value further.
Impairment Loss Narrowed Sequentially
Recently, MicroStrategy reported a 90% sequential decrease in impairment loss from their bitcoin holdings to $18.9 million during Q1 of 2023 compared to $196 million in Q4 of 2022. This shows how well their investments are doing and how bullish they remain on cryptocurrencies long-term potential regardless of any market fluctuations occurring on shorter time frames
Advice From Michael Saylor
Michael Saylor advises those looking to invest into cryptocurrencies such as Bitcoin not to be deterred by any short-term volatility but instead hold onto it and stomach whatever happens over time. According to him “Bitcoin is the ultimate digital scarcity network” and if one holds onto it long enough then they will likely see positive results eventually due to its 50% increase on average over past three years
Despite some minor losses recently, overall Bitcoin remains up around 70% since start of 2023 and continues to be viewed positively by many investors who believe in its long-term potential regardless of any market volatility happening over shorter times spans