According to the chairman of MicroStrategy, Bitcoin’s chances of being adopted in the US, EU, and China would significantly increase if it were seen as digital property rather than a means of trade.
Cryptocurrency investors should see Bitcoin (BTC) as a “billion dollar building in cyberspace” rather than a medium of exchange and hold on to it for the next century, says MicroStrategy chairman Michael Saylor.
Saylor said in an interview with CNBC on March 11 that Bitcoin’s “killer application” is its capacity to preserve wealth for hundreds of years and that there is a “fundamental misunderstanding” among those who see Bitcoin as a currency.
Saylor advised, “People will be polarized if they consider it a currency; therefore, I would suggest they consider it a digital currency, a property worth a billion dollars in cyberspace.”
“Using a percentage of their Fifth Avenue skyscraper to purchase a cup of coffee is not someone’s goal. However, not a single wealthy person I know has ever griped about having to use their building as a medium of trade, even if they all own property in major cities like London or New York.”
According to Saylor, many of the “difficult concerns” with cryptocurrencies have focused on their potential as a means of trade, and if they were considered digital property, countries like China, Europe, and the US would be far more inclined to accept them.
“The medium of exchange is only worth 1 trillion dollars; the store of value is worth 100 trillion dollars,” Saylor continued, further underscoring the superior property status of Bitcoin compared to traditional currencies.
Coincidentally, BlackRock CEO Larry Fink made a similar point earlier this year in an interview with CNBC on January 11th, stating that Bitcoin is more appropriate for storing wealth than competing with national currencies.
Saylor, addressing the effect of spot Bitcoin ETFs, predicted that Bitcoin will “eat” into gold, remarking that Bitcoin “has all the amazing features of gold” without any of its flaws.
“There’s no issuer [and] no corporation controlling it, so it’s the king of commodities and a globally recognized and trusted investment asset. It’s also ethical.”
Saylor addressed the topic of whether he slept poorly when Bitcoin’s price dropped below $20,000 by stating that he had no “doubt” about the cryptocurrency’s robust rebound:
In Saylor’s perspective, “it’s the greatest of the assets, meaning there is no second best. So he had no doubts about it.”
As of this writing, the price of one bitcoin is $72,400, an increase of 9.3 percent over the last week and 44.7 percent over the past month.
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