- MicroStrategy’s CEO predicts increased adoption of Bitcoin to combat inflation in the dollar.
- The first companies to adopt the BTC standard will receive an advantage over their competitors.
Considered by many in the crypto space to be the initiator of the wave of Bitcoin adoption, MicroStrategy’s CEO Michael Saylor recently spoke about the future of the cryptocurrency. In an interview with HyperChange, Saylor predicted an increase in institutional participants buying BTC.
By mid-year, MicroStrategy modified its treasure reserve strategy to focus on Bitcoin. The main reason behind the change was to adopt a value reserve asset that would protect the company from inflation in the dollar. Saylor stated:
You’ve got $20 billion dollars worth of monetary energy today. It’s losing 15% of its purchasing power a year. You’re going to lose half of that energy in 36 months unless you protect it.
Caused by the US Federal Reserve’s measures to combat the effects on the economy of Covid-19, the increase in the dollar’s money supply has reached unprecedented levels. In that sense, MicroStrategy’s CEO explained that making an investment in BTC not only serves as a hedge but as a way to double the funds:
If you put it into Bitcoin, instead of losing half your purchasing power, you can reasonably expect to double your purchasing power every year for the next three years, so why not put $1 billion in and it’ll be worth $8 billion in three years. If you keep all the money, you’re guaranteed to lose $10 billion in purchasing power. It’s a guarantee…
If Tesla puts $1 billion dollars [into Bitcoin]they will double their money within 12 months. If they put $2 billion in, they will probably generate a $10-billion gain. By the way, anybody could do it. If you’re a billionaire hedge fund guy, you put a billion into Bitcoin, just put it out on the wire and say you did it.
Bitcoin will be the dominant currency and network
After MicroStrategy’s announcement, Square was the next company to make a big move on BTC. Since then, it seems like every week a great player reveals that it has taken a long position in Bitcoin. Saylor believes it’s only a matter of time before companies like Apple, Facebook, and Microsoft adopt the “Bitcoin standard”. He also believes that the first ones to do so will benefit the most.
The sooner you join, the better off you are. And as people join, it gets more powerful and the price goes up. If you’re Tesla, you want to be first because Apple will pay twice as much, and then Google will pay twice that much, and Facebook will pay twice that much and eventually everybody’s got to join because if you don’t join, you’re going to lose 15% to 20% of your purchasing power… And in this particular case, Bitcoin is the dominant answer and as people start to realize that, it’s just going to accelerate the transition and the adoption rate.
Saylor believes that Bitcoin creates a “virtuous cycle” where adoption drives the BTC price and vice versa. This feature makes it an asset that operates with a dynamic “opposite” to that of equity in the traditional market. Therefore, the CEO of MicroStrategy concluded the following:
Bitcoin is a dominant network that’s unstoppable… 99% of the investors don’t understand it, but once they understand it, they’ve all got to stampede into it and they’re going to squeeze through it and they’re going to bid the price up.
Der Beitrag Saylor: Tesla and Fortune 500 companies will buy Bitcoin to save future erschien zuerst auf Crypto News Flash.