Michael Saylor, CEO of software intelligence company MicroStrategy, explained to ETF Think Tank why his company buys bitcoin directly, holds it in custody and does not lend it out. MicroStrategy CEO said that people underestimate Bitcoin and overestimate the other industries in blockchain and cryptocurrency.
Saylor is well-known for his straightforward approach to bitcoin: buy and hold. He was asked by MicroStrategy why it hasn’t given any of its bitcoin holdings to anyone, due to the rise of other platforms that offer the chance of earning interest on BTC.
Saylor stated that he believes the counterparty risk to be large. He cited the extra work required and the increased risk of lending bitcoin. “So, the point is that you take 100 times more risk and it’s 10x as difficult – to get at least 5% more [per annum].”
One interesting side effect Saylor’s bitcoin holdings has had on his company is brand awareness. MicroStrategy’s brand awareness has been increased by one hundred percent since the purchase of bitcoin more than a year ago, according to Saylor.
Saylor stated that Bitcoin was “one of the most disruptive technologies of the decade” and is disrupting the energy sector, investment community, and the technology community. It’s also disrupting politics, economics and the general economy. It grabs people’s attention, it’s progressive, and it keeps them focused.
Saylor said that investors in the blockchain industry lack real focus. People will become more comfortable with Bitcoin’s ‘crypto novelty’, which is pushed forward by strong marketing efforts from founder teams. As a result, they will spend less time on it.
Saylor said, “It’s important to understand that Bitcoin, the most predictable thing in all of the blockchain universe, is the most unpredictable, and everything else is uncertain.” “There is a lot of technical, security and legal uncertainty. So I believe people underestimate the Bitcoin’s value and overestimate its security.
Many people criticize MicroStrategy and Michael Saylor for only focusing on Bitcoin, while ignoring other projects that are built on blockchain technology. The CEO of the software company said that Bitcoin is the true diversifier and allows its holders to diversify against traditional economies.
Saylor stated, “I believe that when you get in to the blockchain area there’s just an enormous stack of risk.” “So, I believe people underestimate the risks associated with not buying Bitcoin. They’re also underexposed. Trading 250 to 500 different crypto currencies is not the way to make money. The value of Bitcoin is not in trading 50 trillion dollars of bonds into Bitcoin, or 50 trillion dollars from real estate. The people should be more exposed and less exposed in general to Bitcoin.
MicroStrategy CEO, Saylor, stated that a laser-focused focus on bitcoin should not be reserved for fintech and technology companies. Saylor said that bitcoin could solve all of the problems in any country or government.
Saylor stated that if El Salvador, Cuba or Turkey, Japan, Russia (the U.S.), the U.K., and France buy bitcoins, they will fix their balance sheets. Every company on Earth can buy bitcoin to fix its balance sheet. Bitcoin is the solution for hundreds of thousands entities.
Bitcoin is the solution for individuals. Saylor said, “If you’re a saver looking to buy land, gold or any other scarce asset over the next 100 years, bitcoin is the best idea that we have seen in a century.