Michael Saylor, Executive Chairman of MicroStrategy, shared his reason for investing $500 million in Bitcoin during the 2020 crisis.
Reasons for Abandoning Traditional Assets
Saylor noted that traditional financial strategies were not meeting his expectations in a time of rising inflation and economic uncertainty. He ruled out U.S. Treasury bonds due to their poor returns and stated that the stock and real estate markets did not impress him, as their growth was largely dependent on interest rates. Gold, once considered a safe asset, also proved ineffective, as it had not brought growth for nearly two decades, and Saylor referred to it as 'dead money.'
In-Depth Exploration of Bitcoin
Saylor delved into Bitcoin through various online resources and books, including 'The Bitcoin Standard.' Initially, he regarded Bitcoin as a scam, but his perspective changed as he recognized its potential as a network and protocol capable of storing economic energy. He highlighted Bitcoin’s digital status, low availability, and decentralized nature, creating reasons for corporate investment.
The Future of Bitcoin in the Face of New Technologies
During the interview, Saylor discussed concerns regarding quantum computing and its impact on Bitcoin's security. He characterized a quantum attack as akin to stealing an email password, affecting access rather than the structure of the system. Saylor believes that future threats can be managed through network upgrades and ensuring Bitcoin’s safety.
Michael Saylor's decision to abandon gold in favor of Bitcoin was driven by the need for a more adaptable and valuable asset. His confidence in Bitcoin's structure and independence remains firm, even in the face of technological changes.
