The buying of bitcoins by giants like MicroStrategy and Tesla is just the “tip of the iceberg,” said MicroStrategy CEO Michael Sailor in an exclusive interview with TIME.
According to him, the cryptocurrency market remains a very attractive place for investment by professional investors who are also preparing to make large investments in BTC. In general, the popularity of Bitcoin in the financial world will only continue to grow – this was recently facilitated by even US Federal Reserve Chairman Jerome Powell.
Recall that there are more than enough reasons to invest in cryptocurrency. In particular, Bitcoin has already become the most profitable asset of the decade and has significantly surpassed the indicators of competitors. On average, BTC has grown 230 percent throughout the year. At the same time, the corresponding result of the Nasdaq 100 index was only 20 percent.
And although the cryptocurrency market has already shown incredible growth results, the upward trend will most likely not end there. As we learned in the middle of the month, the largest bank Morgan Stanley will open access to cryptocurrency funds for clients.
Accordingly, over time, more and more people will be able to get the opportunity to invest in coins and make money on them. Moreover, more and more such services will continue to grow.
Who Buys Bitcoin?
Here is one of Sailor’s quotes from an interview in which he shares his vision of the situation. The cue is from Decrypt.
Suddenly, sentiment among professional investors changed dramatically. Now we are not talking about «crazy people who speculate in bitcoins», but about the fact that cryptocurrency «has become a real thing that will not disappear anywhere.»
That is, Michael admits that large investments in Bitcoin from world famous companies have significantly affected his reputation. They helped conservative investors open their eyes and value cryptocurrency without bias. And here it turned out to be an excellent financial instrument that does not depend on the actions of governments, is distinguished by a fixed maximum supply and emission rates, and also allows everyone to work with it.
In addition, BTC is now in the investment portfolio of Elon Musk’s company, who managed to become the richest man in the world this year. Naturally, such arguments are enough for investing in the blockchain asset industry.
In the summer of 2020, MicroStrategy rocked Wall Street by becoming the first public company in the US to openly invest in Bitcoin. Last month alone, the company bought a billion dollars worth of coins and then made several more smaller BTC purchases. Now the total amount of cryptoassets managed by MicroStrategy reaches 91,326 BTC , the company has invested approximately $ 2.211 billion in the main cryptocurrency for all time.
We checked the actual data: today there are 21 public companies in the portfolio of Bitcoin. The top three investors are MicroStrategy, Tesla and Galaxy Digital, which hold 91,326, 48,000 and 16,402 BTC, respectively. Also on the list are Jack Dorsey’s Square and Chinese Meitu, which is actively buying Ethereum. A complete list of large BTC investors can be found here.
Previously, Sailor also hosted the Bitcoin for Corporations Summit, where he consulted with representatives of other companies on the potential of digital assets. According to him, he expected the presence of several thousand guests, but the virtual event was attended by more than 10 thousand people . This, among other things, led to malfunctions of the video server of the organizers of the summit.
MicroStrategy’s entry into the crypto market has also had a positive impact on the company’s stock, which has surged more than sevenfold in the past twelve months and is now valued at $ 724, up from $ 107 a year ago . Sailor argues that the wave of investors flocking to digital assets was a «case study» for rational action in response to dollar inflation, against which Bitcoin is the only defense.
At the same time, the current exchange rate is far from the peak of $ 1272 from February 9, 2021. Although the situation is likely to change after the start of the next wave of growth in cryptocurrencies.
The dollar itself will never be replaced by cryptocurrency, but gold is quite. This opinion was voiced by US Federal Reserve Chairman Jerome Powell at a recent event organized by the Bank for International Reports (BIS). Here is one of his lines, quoted by Cointelegraph.
Crypto assets are very volatile and therefore not very useful as a store of value, and they are not backed up by anything. They are rather an asset for speculation, so they are not particularly used as a means of payment. It is rather a speculative asset. In fact, it is a substitute for gold, not the dollar.
It’s funny that the dollar, which «cryptocurrencies cannot replace», in fact, is also not supported by anything. We believe that Bitcoin really cannot become a global currency due to the slow network and the ability to handle only 7 transactions per second, but other blockchain projects are able to cope with the task. For example, Ethereum, after switching to version 2.0, will process thousands of transfers per second.
In general, the capitalization of the precious metal market exceeds the $ 8 trillion mark, while all the mined bitcoins are estimated at about a trillion dollars. That is, the main cryptocurrency, like the entire digital asset market, still has a huge room for growth.
We believe that Michael Saylor’s words can be trusted. His company has invested huge amounts of fiat in Bitcoin, which is beyond the reach of ordinary people looking to capitalize on the growth of the coin. Michael’s team can be safely called true cryptocurrency enthusiasts who believe in the transition of the world to digital assets in the near future. And they are ready to wait for it even for a hundred years.