Michael Saylor, a renowned Bitcoin advocate, recently emphasized the long-term value of Bitcoin, advising investors to hold onto the digital asset for 100 years. In a significant move, Saylor’s company made a colossal purchase of Bitcoin worth $800 million at an average price of $68,377 per coin, funded by a $700 million convertible note offering. This purchase cements his firm’s position as the world’s largest corporate holder of Bitcoin, owning nearly 1% of the total BTC supply that will ever exist. Saylor’s belief in Bitcoin extends beyond its use as a digital currency; he views it as a superior form of digital property for capital preservation accessible to billions worldwide.
Bitcoin as Digital Property
Saylor argues that Bitcoin should not be seen merely as ‘digital currency’ but rather as valuable digital property. He suggests that Bitcoin’s primary use case is capital preservation, with a total addressable market estimated at $100 trillion. Compared to its current market cap of under $1.5 trillion, Bitcoin’s growth potential is vast, offering a compelling opportunity for investors.
Regulatory Perspective on Bitcoin
The use of Bitcoin as a medium of exchange has faced criticism and regulatory scrutiny. Critics such as Elizabeth Warren and Gary Gensler have raised concerns over potential money laundering activities. However, Saylor believes that focusing on Bitcoin’s property aspect rather than its transactional use could alleviate regulatory concerns. He points out that Bitcoin’s value lies in its long-term holding potential, akin to owning valuable real estate, rather than its use in everyday transactions.
Bitcoin’s Competing Assets
According to Saylor, Bitcoin is set to outperform traditional assets like gold, equities, and real estate due to its digital nature and global accessibility. He predicts that Bitcoin will eventually surpass gold in market cap, citing the rapid growth of Bitcoin spot ETFs in comparison to gold ETFs. Saylor envisions Bitcoin as a viable long-term investment competing with other risk assets and serving as a retirement income source for the middle class.
