Earlier this week, Bitcoin, the largest cryptocurrency asset witnessed a steep decline as a result of Japan’s stock market crash, demonstrating the volatile nature of the asset during macroeconomic turmoil. Following the recent market turbulence, Michael Saylor, the co-founder and Executive Chairman of popular business intelligence firm, MicroStrategy has taken the initiative to address the growing concerns regarding the volatility of Bitcoin.
Michael Saylor Flags Bitcoin’s Volatility As A Feature, Not A Bug
The MicroStrategy co-founder, Michael Saylor offered his insights on Bitcoin’s volatility in a recent interview on Bloomberg Open Interest. His insights are intended to comfort investors about the feasibility of using Bitcoin as a hedge against economic volatility and a store of value.
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In the interview, Saylor well recognized as a supporter of the crypto asset reiterated his strong confidence in the long-term potential of BTC in spite of current volatility. Addressing the subject, 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 liquidation in the short term. However, in the long term, it is a superior asset in terms of performance and durability. Saylor believes the asset is volatile due to its functionality, as the physics and politics of BTC have closed and crippled all other markets.
Discussing its potential to serve as a store of value, Saylor emphasized the asset’s superiority over physical capital or financial capital. The MicroStrategy executive considers BTC a better store of value since it offers financial freedom from counterparties.
He stated:
The reason it moves is because it’s functional. It’s digital capital and it’s superior to physical capital or financial capital. Bitcoin is a capital investment you can hold for decades that a corporation, competitor, counterparty, or country can’t take away from you.
As a result, he believes the digital asset could act as generational wealth within the retail and institutional level while offering personal management funds. Given the decentralized nature of the coin, Saylor contends that Bitcoin is paramount to any other long-term capital management in the world despite its volatility.
Anytime Is Right To Invest In BTC
When asked about the right time to purchase BTC, Michael Saylor stated that there is never a bad time to acquire the asset, comparing it to a real estate investment in Manhattan. He further emphasized MicroStrategy’s BTC investment strategy, noting that the firm generally purchases Bitcoin whenever there is an opportunity and enough capital has been raised.
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While Saylor believes there is no perfect time to buy BTC, he has stressed the importance of understanding seasons and market trends in order the navigate the crypto asset’s price fluctuations. As investors navigate these volatile times, Saylor statements offer a key viewpoint on the long-term value of Bitcoin.
Featured image from YouTube, chart from Tradingview.com