Cryptos:  11,149Exchanges:  391Market Cap:  $1,563,410,708,31124h Vol:  $76,544,259,389Dominance:  BTC: 46.3% ETH: 18.6%ETH Gas:  31 Gwei
Cryptos:  11,149Exchanges:  391Market Cap:  $1,563,410,708,31124h Vol:  $76,544,259,389Dominance:  BTC: 46.3% ETH: 18.6%ETH Gas:  31 Gwei

MicroStrategy Founder Predicts Bitcoin Would Become Primary Treasury Reserve Asset

HeadlinesNewsMicroStrategy Founder Predicts Bitcoin Would Become Primary Treasury Reserve Asset

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MicroStrategy Founder Predicts Bitcoin Would Become Primary Treasury Reserve Asset

Coingape8 months ago
Published on November 26, 2020 09:26 GMT+0edited on November 26, 2020 09:32 GMT+0

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Microstrategy, business analytics, and mobility platform decided to convert a portion of their company’s treasury reserve and bought $400 million worth of Bitcoin back at the end of Q3, 2020. The company made a strategic decision to include a non-corelative asset like bitcoin in their portfolio to ensure a hedge against growing inflation and the decision seems to be paying off as the price of Bitcoin has almost doubled since then and outperformed the company’s other forms of revenue.

Micheal Saylor, the CEO of MicroStrategy is a bitcoin proponent himself who revealed earlier in October that he holds a Bitcoin portfolio worth 17,732 BTC which he bought at $9,889 apiece. Saylor recently appeared on CNBC to talk about the ongoing bitcoin mania and the decision of his firm to invest in the digital asset. Saylor revealed that at MicroStrategy they view Bitcoin as technically superior to Gold and the decision to invest in Bitcoin is already paying great dividends.

Saylor explained that

“the cost capital has increased three times from 5% to 15% over the past year due to the feds money printing spree. We had $500 million in cash in our treasury and going by the diminishing value of the dollar, we were only going to lose value on our stored treasury. We came across bitcoin which has been designed to store value and engineered superior to gold, and that compelled us to invest in Bitcoin.”

Bitcoin is Going to Be  Bigger Than Amazon

Bitcoin’s biggest drawback over the years has been its high volatility rates, however, Microstatergy CEO believes that is quite a common phenomenon with any other asset class and as Bitcoin matures as an asset it would become more stable with acceptance. The volatility was a playing factor in the first decade, however, at this point bitcoin is seeing a big mainstream leap and its volatility will only go down from here.

The MicroStrategy founder and CEO believe that in the coming year’s bitcoin’s market cap is only going to get doubled and tripled from its current value of $350 billion and it would be bigger than Amazon and Apple. He also believed that the tech unicorns like Apple, Google, and Amazon would rush to convert their cash treasury into bitcoin as the digital gold would become a primary treasury reserve asset.

Bitcoin finally experienced a price correction at the top after seeing almost a 3-week price rally in green. Bitcoin crashed by 5% falling from a daily high of $19,380 to %17,550.

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