Earlier this year, business intelligence giant MicroStrategy invested $425 million in Bitcoin (BTC). This move is largely seen as a major step by the mainstream in the right direction to adopt Bitcoin. However, former hedge fund investor Raul Pal stated that MicroStrategy CEO and founder Michael Sayler (a Bitcoin skeptic turned bullish) may not lead companies in mass adoption of pioneering assets in the crypto space.
Pal told the podcast host Peter McCormack in the podcast “What Bitcoin Did” released today: “I don’t think Michael will promote corporate adoption in this area because he speaks the language of Bitcoin, not the corporate treasurer. Language, this must happen”.
“We say that other people’s languages are very bad in this field, and we actually want to encourage them to enter the system.”
MicroStrategy announced as early as August that it had purchased $250 million in bitcoin. In September, the company invested another $175 million in Bitcoin. Saylor used to be skeptical of Bitcoin, but now he is totally bullish on Bitcoin and often posts comments about Bitcoin on Twitter. He also stated that before the company bought bitcoins, he purchased 17,732 bitcoins as personal assets.
When talking about MicroStrategy’s purchase of Bitcoin, Pal said: “Don’t worry about the amount of money, this is a large part of the cash reserves. Now, most companies will not do this, but Michael is a true believer.”
Pal said: “I have mentioned this many times: unless you start talking about the bearer asset allocation model, you will not understand the pension system and asset allocation. No one of us knows what these are, because there is no People use them.”
It is true that Pal himself does not know the exact circumstances of the asset allocation strategies adopted by various industries, but he did describe the universality of these strategies. In essence, each industry has its own set of original specific goals, terminology and strategies.
He explained: “This is based on the asset allocation model used by the entire pension industry, consultants, actuaries and other industries.”
“Microsoft’s treasurer may work in his position for 10 years and then change jobs. Talking to him about the 100-year value of currency is irrelevant. It doesn’t matter. Show him his commercial credit, bills, national debt and different currencies. Portfolio diversification effect, and then say, well, if you put this in a portfolio, it will have such an impact on your portfolio. Then he will say, yes, I understand. I want to do this too do.”
Some other mainstream players also hold large Bitcoin positions in 2020, such as billionaire Paul Tudor Jones. However, the trend of companies investing in this asset is still largely in its infancy.
