38.8 C
Dubai
Sunday, May 26, 2024
HomeBitcoin NewsMichael Saylor: BTC Is Valuable Because It's Rare

Michael Saylor: BTC Is Valuable Because It’s Rare

Date:

Related stories

Michael Saylor – the CEO of software giant MicroStrategy, arguably the biggest institutional bitcoin bull around – has stated that bitcoin’s scarcity is ultimately what makes the currency the strongest asset in the world, right now. He says nothing – not even gold – can compare to bitcoin because it is the only thing that cannot be created indefinitely.

Michael Saylor On Bitcoin’s Scarcity

In a recent interview, Saylor described bitcoin as a “magical” asset given that only 21 million units will be minted. Thus, it is the rarest asset known to man, and that scarcity will purportedly give it even more value in the coming future. He stated:

I can create more real estate in New York City. I can create more cars. I can create more luxury watches. I can create more gold. I can create more shares of a stock. I can create more bonds. I can create any commodity [because] they’re commodities. Given enough money and time, I can create an infinite amount of any of them.

MicroStrategy is one of the biggest backers of cryptocurrency, bitcoin to be specific. Saylor has repeatedly come out to say how strong the asset is, and he’s convinced our financial policies and systems will potentially revolve around the world’s number one digital currency by market cap at some point. That’s why he’s no longer putting emphasis on stocks, cash, or even precious metals like gold.

The firm began purchasing digital currencies in August of 2020. MicroStrategy shocked the investing world when it bought roughly $250 million worth of the asset. From there, the currency experienced a very bearish September, and the asset dropped from about $12,000 per unit to just under $10K. Any other firm would have probably sold all its assets and accepted a loss, but MicroStrategy took the opposite approach.

By contrast, the software firm decided to buy more and engaged in “hodling,” meaning it would hold onto the bitcoins it had purchased for a while. This decision proved fruitful as in the following month, global payment platform PayPal announced that customers could soon purchase digital currencies through its network. The company would also house these assets and provide custody services.

How Strong Will the Asset Be?

From there, the price of bitcoin rose beyond $13,000 per unit, meaning MicroStrategy saw a huge boost in its investments. Since then, the company has continued to engage in regular BTC purchases and as of February 2022, MicroStrategy owns more than 125,000 units of bitcoin worth more than $5 billion.

Bitcoin’s rarity has long been a subject of controversy amongst most analysts given that there are only going to be 21 million units in existence. Granted that final unit will not be mined until the year 2140, though at press time, as much as 90 percent of the global bitcoin supply is already in circulation.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

Subscribe

Latest stories