As a well-known advocate of Bitcoin (BTC), Michael Saylor cites inflation as one of the key reasons for his support.
The MicroStrategy Chairman and CEO gave his ideas on why he thinks BTC is a feasible answer to inflation, the possibility for greater Bitcoin acceptance, and what Twitter under Elon Musk may mean for the cryptocurrency community in an interview with Bloomberg Technology.
It was highlighted that Bitcoin has been trading in a confined range for a long time and that it hasn’t really progressed above the $40,000 price point. Saylor argues that it all comes down to putting things into perspective in terms of how much time has passed.
After two years, MicroStrategy is up 400 percent and outperforms the Nasdaq or gold or any other asset you might have acquired. For a time span of days or weeks or even months at a time, the traders are in charge,” he said.
Traders, technocrats, and maximalists are just a few of the several sorts of Bitcoin investors identified by Saylor.
He continued, saying: Its game on for the maximalists. Jack Dorsey and I both believe that Bitcoin is a tool for economic freedom. In the end, the market price is determined by a tug-of-war between the technocrats—the individuals who are pro-technology and believe it’s the next major internet network like Google or Amazon for money—and the traders, who are looking at an uncorrelated asset.”
The link between Bitcoin and risk assets
Saylor and Emily Chang also explored when Bitcoin may break the link with risk assets. Moreover, Maximalist or tech investors would be better long-term investments, according to CEO’s opinion. As long as there is market turmoil, uncertainty about Fed policy, and short-term panic on Wall Street, he thinks traders will maintain their dominating position in the market.
So, he indicated that Bitcoin would break the correlation in four years, but he couldn’t be more precise about when it will do so.
According to Saylor: Suddenly, the correlation will shift from 70% connected to 0% risk assets on a day that is completely unexpected. ” And when that occurs, traders will flip the polarity of their trade and technologists will begin to double down and the maximalists will enjoy the ride.”
Saylor believes that the crypto community will remain decentralised regardless of the result of the current debates, given the size of the crypto community on Twitter. If Musk takes control, Saylor believes that the crypto community would remain centralised.
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