Bitcoin adoption has picked up the pace recently as investors acquire more of the leading crypto asset.
With several market analysts giving their takes on the key driver behind this renewed surge, MicroStrategy’s former CEO, Michael Saylor, recently expressed his view on the matter.
Inflation and Counterparty Risks Drive Bitcoin Adoption
Saylor believes these issues result in the loss of confidence in fiat currencies, causing investors to turn to risk-off assets like Bitcoin:
“There’s the macroeconomic concern about inflation and as inflation takes place, people lose confidence in fiat currencies. That means they start to realize that everything valued on cash flow is a currency derivative and bitcoin is not valued on cash flows,” he explained.
“The failure of the banks… causes people in the Western world to start to lose a little bit of faith in the banking system and they remember that bitcoin is a bank in cyberspace run by incorruptible software… So the combination of that concern about inflation and counterparty risks with banks is driving bitcoin’s adoption,” he said.
MicroStrategy Not Backing Down From Long-term BTC Plan
He explained that MicroStrategy, which recorded significant growth in Q1, was “a cash cow” to pay off interest on its debts while acquiring more bitcoin. He added,
“The real key with bitcoin is being able to hold on to it and stomach the volatility. We have conditioned our shareholders and our bondholders to understand that we’re long-term HODLers and because everybody is aligned in that interest, we’re able to weather that volatility and we end up doing very well as Bitcoin recovers.”