Bitcoin critics will have to come up with new arguments against cryptocurrency, as old claims about the negative sides of a digital asset no longer work. This was stated in an interview with economist Mark Friedrich by Michael Sailor, CEO of the analytical giant MicroStrategy.
Recall that this year MicroStrategy made a large investment in Bitcoin and joined other large companies that began to actively invest in cryptocurrency.
There is no need to go for examples of criticism of Bitcoin. On the eve of the “weak” spots of the first cryptocurrency, the creator of the Forbes platform, Steve Forbes, emphasized. He noted that the volatility of the cryptocurrency is too high, that is, its rate changes too sharply. In this regard, people cannot store value in BTC, because it will be unstable.
At the same time, the media mogul lost sight of the fact that Bitcoin has been growing for quite long periods. In particular, after the March market collapse below 5 thousand dollars, the rate of cryptocurrencies managed to increase several times. And since then, it has done without long subsidence.
Moreover, the volatility of BTC and other cryptocurrencies is precisely what allows traders to make – as well as lose – money. However, this is a property of an asset, so there is little point in complaining about it.
Here is a graph of the cryptocurrency rate in 2020.
What’s happening with Bitcoin
According to Sailor, the crypto market has changed a lot over the years. Today’s Bitcoin is seriously different from itself in 2015 or 2017. Since 2017, BTC has grown in terms of infrastructure, fundamentals and worldwide adoption.
In the past year, large financial institutions have begun to increasingly view BTC as a store of value and inflation hedge. Although at the same time, critics stated that Bitcoin is too unstable and there is a risk of its price falling to zero. Sailor stressed that these arguments are less relevant now, because BTC has changed significantly in three years, according to Cointelegraph.
In a sense, the main cryptocurrency is similar to the famous American basketball player LeBron James, said the CEO of MicroStrategy. Here is his line in which he shared an interesting comparison.
I also thought it was important to deal with fears and worries about the original Bitcoin and the crypto community, among which there are still concerns about the high volatility of the cryptocurrency, as if these people are still living in 2012, 2015 or 2017. LeBron James played basketball from 9 to 18 years old – and he was talented but irrational and fickle. But then he grew up and from 18 to 28 he destroyed everyone and everything in his path.
In other words, the old myths about Bitcoin are no longer relevant: the cryptocurrency has gone through several stages of development at once according to several indicators. The digital asset industry has changed almost beyond recognition since it reached the previous all-time high in 2017. In this case, it is precisely at the stage of “destruction” – at least in the statements of critics.
Recall that large companies invest in BTC – usually strong players with large capital are actively interested in any investment opportunity just before its profitability takes off. This is the so-called “smart money”, which always manages to invest in an asset before the main stage of its value growth and indirectly provoke it. Right now, they are redistributing part of their capital in BTC in order to get X in the future.
We believe that Bitcoin really began to be taken significantly more seriously during 2020. A fixed supply of 21 million coins of cryptocurrency perfectly resists the activity of governments that print money amid the pandemic, and independence from central banks creates a sense of security. In addition, BTC has started to appear on global platforms like PayPal, which also proves the coin’s excellent prospects.
So Michael Sailor is definitely right: if in 2017 novice investors could still be scared by sharp fluctuations in cryptocurrency rates, today even this is not able to scare people away. And thanks for this should be the actions of various officials who did not quite cope with their tasks against the backdrop of the global crisis.