Michael J. Saylor, Co-Founder, Chairman, and CEO of MicroStrategy Inc. a Nasdaq-listed business intelligence company, discussed why Bitcoin should be considered a rarity – possibly the only one in the world — rather than a commodity.
At the time, Saylor stated:
“A confluence of macro variables affecting the economic and commercial landscape prompted our choice to engage in Bitcoin at this time, which we believe is creating long-term risks for our corporate treasury program, risks that should be tackled effectively.”
MicroStrategy has continued to amass Bitcoin since then, and its CEO has become one of Bitcoin’s most outspoken proponents. MicroStrategy’s most recent $BTC acquisition, which Saylor announced on February 1, means the company now has 125,051 bitcoins in its HODL, which were “bought for $3.78 billion at an average price of $30,200 per BTC.
Saylor addressed why Bitcoin should not be termed a commodity during an interview on episode 128 of PBD Podcast :
Bitcoin (BTC) is miraculous because there are only 21 million of them. Michael went on to say, In New York City, he has the ability to build additional real estate & additional automobiles. He also added, can make additional high-end timepieces that have the ability to produce more gold. Limitless new stock shares and greater bonds can be made.
“I have the ability to generate any commodity.” By definition, they’re commodities. I can make an endless number of any of them if I had enough money and time. Bitcoin is a limited resource. So, what’s another worldwide scarcity you can think of? And, technically, there doesn’t seem to be any more scarcity, does it? Scarcity refers to a limited quantity of anything.
It is totally capped if the price rises by a factor of a thousand or a million. That is not the case with gold, soybeans, silver, equities, bonds, real estate, single-family houses, ships, planes, trains, or anything else for that matter. Everything else is something that could be created. And, of course, as the price rises, so does the motivation to produce more, which is why, in an inflating economy, buying a property isn’t necessarily going to be a good store of wealth because you’ll have incentives for someone else to dilute the value of your house.
If you do decide to buy a home, go for a house on the first floor rather than a condo on the 57th floor. If you’re going to buy it on land, make sure it’s waterfront. If you’re going to buy waterfront property, make sure it’s on the beach. And if you purchase it on the beach, you’re better off buying it in the most sought-after place for affluent clever people for the next 30 years. And you can do it for a decade.
That’S Palm Beach? Or that’s the Hamptons? You’ll be able to suss it out. “Now think for a hundred years.“
What are your thoughts on Michael’s stance on bitcoin? Please share your thoughts in the comments box below.
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