After buying 250 million US dollars in Bitcoin, MicroStrategy, a commercial company listed on the Nasdaq, purchased another 175 million US dollars in Bitcoin last month.
MicroStrategy CEO Michael Saylor accepted an interview with Stansberry Research on Friday. In the interview, he expressed his concerns about the macro economy and his reasons for buying Bitcoin instead of gold.
He mentioned, “I didn’t care much about the macro economy in the past decade or so, but when interest rates fell from 2% to 0%, everyone started to care about the macro economy. We will encounter the largest economic intervention in the history of the Federal Reserve. I had a big shock. I started to study the money supply. I found that the money supply has increased by 7% in the past ten years. The inflation rate is not 2% but 7% to 8%. In a few years, the asset inflation rate will reach 10% or More. When I think that assets will depreciate by 10% in three years, I imagine a scenario where 1.5 million US dollars are burned or melted, which makes me very anxious.”
When asked why he didn’t choose gold, Saylor said, “I thought about gold. I found that the amount of gold produced by gold miners has increased by 2% each year, while the number of bitcoins will never exceed 21 million. In 100 years, Bitcoin will still be a hard currency, and the production of gold can be controlled. In the long run, Bitcoin will be more’hard’ than gold.
He believes that although the price of gold will also rise, when this happens, people will definitely produce more gold, which is determined by human instinct. When the price of a thing rises, people will produce more. Oil is an example. When the price of oil rose to $100 a barrel, the amount of oil produced in the United States increased from 5 million barrels to 10 million barrels in five years, which caused the oil crisis.
Saylor emphasized, “Everything that can be produced by people will produce more when the price is high. Bitcoin does not. If I invest $1 million in mining, it will not increase the number of bitcoins, but Increase the security of the network.”
He also stated that Bitcoin is powerful, fast and smart, just as people are attracted to Facebook, Amazon, and Apple by being powerful, fast and smart, people will also be attracted to Bitcoin. Bitcoin is the safest and most liquid asset in history. We have never had such an asset.
When the host asked him to predict the price, Saylor stated that he was Buffett’s disciple. When more people used Bitcoin as a stored-value asset, the price of Bitcoin would naturally rise, but he bought Bitcoin to hold it. Not speculative.
He firmly believes, “The price of Bitcoin will rise over time, and I think it will be very valuable in the future.”
