Microstrategy CEO of business intelligence, Michael Saylor, is all out to praise the king of cryptocurrencies, Bitcoin. In his most recent interview with Raoul Pal, he confirms Bitcoin is the world’s best collateral.
While hyping Bitcoin, Saylor also said that the firm plans to hold the digital asset for over 100 years. In August, MicroStrategy bought Bitcoin worth $425 million in two installments. After the crypto’s recent apprecation to $13,000, company holdings increased by $72 million. The profit accumulated in less than 12 weeks. MicroStrategy hopes this is just the start of something bigger.
Why MicroStrategy staked on Bitcoin – Saylor
In August, the firm purchased Bitcoin worth $250 million. Before then, they advised their shareholders that fiat was no longer a safe asset for its cash surplus. Afterward, the firm bought more Bitcoin, amounting to $175 million.
Michael Saylor, however, disclosed that the firm did not just arrive at buying Bitcoin. He states in his interview with Raoul Paul that the decision to purchase BTC was reached after serious discussions with the firm’s decision-makers and investors.
Saylor discloses that, if they are to transfer millions of idle cash into Bitcoin, everyone has to be on board. He also said that the firm’s Bitcoin is not a speculation or a hedge. Instead, it’s a deliberate corporate strategy to adopt the Bitcoin standard.
Largely, it is believed that the impact of coronavirus on the global economy made MicroStrategy look towards other investments. The firm has to invest in alternate assets that can preserve the value of its capital in the long-term.
According to Saylor, they settled for Bitcoin when they discovered other assets are vulnerable to taxes and ridiculous fees. He disclosed that other assets unaffected by taxes or fees were unsuitable or controlled by a body or government.
Saylor then acknowledged that Bitcoin gets better with time. He called it the “hive of cybernetic hornets protected by a wall of encrypted energy.”
The MicroStrategy CEO also deems Bitcoin to be superior compared to other cryptocurrencies like Ethereum.
Better than Gold, MicroStrategy Plays for Keeps
In the opinion of Saylor, Bitcoin supersedes gold and other assets as it is basically the “world’s best collateral.” Bitcoin performs similar monetary duties as gold and more.
“Bitcoin, if it’s not a hundred times better than gold, it is a million times better than gold, and there is nothing close to it,” he said.
Asked if he would sell it after making more profit or reinvesting, he said there are no plans to sell the coin. Saylor hopes after his tenure as CEO, the next CEO will look favorably upon Bitcoin as well.