Michael Saylor Gives Insight Into The Circumstances That Led His Company To Adopt Bitcoin

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MicroStrategy Plans To Buy Even More Bitcoin With No Intention Of Hedging
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  • Michael Saylor explains the rationale behind MicroStrategy’s adoption of Bitcoin.
  • Saylor explains conditions in which Bitcoin fares better than real estate and gold.
  • The executive has called the digital asset the only scarcity in recent times.

Michael Saylor is now a popular name in the crypto space due to his continued vocal support for crypto. Yesterday, the MicroStrategy boss shed some light on why his firm has adopted Bitcoin aggressively over the last year.

Saylor Calls Bitcoin ‘The American Dream’

Michael Saylor is a known Bitcoin evangelist who has become more vocal about the primary digital asset since 2021. While at the meeting of the Economic Club of New York yesterday, the CEO of software company MicroStrategy explained why the firm turned to crypto, in particular, Bitcoin.

The executive noted that at the time, his company was faced with two financial risks, firstly, what he termed a “fast death” from the technology space, and secondly, a “slow death” from the increasing fiat supply highlighted by the pandemic. Saylor explained that the firm chose Bitcoin as an inflationary hedge because of its ability to post returns comparable to real estate. 

While gold is seen as the traditional inflationary hedge, he said the commodity could not be developed or “rented” like real estate. He revealed he preferred real estate to gold, saying it was a “better idea.” Saylor explained that with Bitcoin, you could get returns comparable to rent by holding it through staking, and you can always carry it with you in your digital wallet in times of conflict. He noted that this ability to transport it was what real estate lacked.

He elaborated on this, showing that properties in Ukraine and Russia were at risk due to Putin’s war effort, a risk that a digital asset like Bitcoin is not likely to face. Taylor said, “If your property is not safe out of your country and it’s not safe in your country, where can you go?” His answer was “cyberspace,” adding that “Bitcoin is the American dream.” 

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It would not be the first time the billionaire would be making such comparisons. Less than a week ago, speaking on the PBD Podcast, he expressed his belief that Bitcoin was the only real scarce asset. Saylor noted that all other assets or commodities could always increase in supply, saying companies could create more real estate, bonds, and shares of stocks. Bitcoin, of course, was designed to have a fixed supply of only 21 million.

Bitcoin As A Risk-Off Asset

Saylor continues to hold the belief that Bitcoin is a risk-off asset. For example, in a tweet at the start of the Russian invasion, the executive said, “Wars create inflation, cripple commerce, and make bitcoin compelling.” And indeed, there has been a notable increase in Bitcoin trading activity in Ukraine due to the conflict.

However, not everyone agrees with Saylor’s position on Bitcoin as a risk-off asset. The crypto market, including Bitcoin, has been strongly correlated with the traditional equity markets in recent months.

Bitcoin today is trading around the $39,061 price point on major exchanges. According to CoinMarketCap data, the asset is up 0.11% in the last 24 hours and 0.74% in the last 7 days.