MicroStrategy CEO Michael Saylor says bitcoin will replace gold as a safe haven.
The price of BTC will replace stock and bond indices
MicroStrategy bought $ 10 million worth of BTC last week for its corporate treasury.
Michael Saylor sees bitcoin, the ideal institutional asset in the Safe Harbor, replacing stock indexes.
Michael Saylor, the bitcoin bull and CEO of MicroStrategy , spoke at CNBC’s Power Lunch on the future of bitcoin. MicroStrategy just bought $ 10 million worth of bitcoin , and he’s been asked about the future of it.
Today I had a great chat with @MorganLBrennan & @GuyAdami about the maturation of #Bitcoin as an asset class, the acceleration of #BTC adoption by institutions and the benefits that businesses earn by joining the #Bitcoin monetary network.
Bitcoin down 20% from highs and @MicroStrategy CEO @michael_saylor buys the decline. He says cryptocurrency could replace gold, bonds, the S&P 500 and even the Dow as the main currency index $ MSTR $ SPY
After replacing gold with BTC
As a “technically superior ” asset , Michael Saylor noted that BTC is the ideal institutional asset to serve as a safe haven. He sees it as a replacement for gold.
Besides Mr. Saylor, Deutsche Bank, JPMorgan , Blackrock and others see BTC as influencing the price of gold or replacing gold as an asset. However, Saylor took his prognosis a step further and said that BTC could replace stock indices such as the S&P 500 or the Dow. Cash- rich companies “say cash is a liability; they must find an asset that will appreciate faster than the rate of monetary expansion ”.
After that, Bitcoin will find itself even more integrated into the business world. It will become the monetary index which will replace stock and bond indices such as the S&P 500 and the Dow. “People who want a safe haven… for the next 10 to 30 years are going to be drawn to a digital asset that doesn’t contain inflation.”
People who want a safe haven… for the next 10 to 30 years are going to be drawn to a digital asset that has no inflation.
Mr. Saylor’s interview on CNBC came as MicroStrategy announced that the company had bought some $ 10 million worth of BTC . This brings the total bitcoin reserves held to around 70,784 BTC. MicroStrategy bought its latest set of 314 bitcoins at an average price of $ 31,808 per bitcoin.
An IT company with a little extra
MicroStrategy is an old-fashioned economy and professional services company. However, Saylor and his team are using bitcoin as a store of value for an increasing portion of the company’s cash flow. As CNBC notes, this causes the company’s stock price to follow that of bitcoin. “It almost became a stock proxy for crypto,” said host Morgan L Brennan.
When Brennan asked Saylor about it, he noted that because companies want to convert liabilities from money to assets, they will do one of two things. Many will do what MicroStrategy has done. They will buy bitcoins directly. Others will follow Square and Paypal’s path, and integrate bitcoin into their product offering.
In addition, Mr. Saylor noted that company employees are “quite pleased” with the measures taken by the company, as they are “pioneers” in terms of using this technology.