Fun

$250 Trillion in Assets Looking for Ideal Store of Value: A Bull Case for Bitcoin

News Feed - 2020-10-27 03:10:39

$250 Trillion in Assets Looking for Ideal Store of Value: A Bull Case for Bitcoin


The CEO of Nasdaq-listed billion-dollar company Microstrategy has made a strong bull case for bitcoin. He says there is a $250 trillion ocean of assets looking for the ideal store a value right now and bitcoin is a better store of value than gold or tech stocks, so “a lot of that monetary energy is going to flow from the asset ocean into the crypto pond.” Comparing Bitcoin to Investing Early in Apple, Google, Facebook, Amazon


In a webcast with Hedgeye CEO Keith McCullough, aired last week, Microstrategy CEO Michael Saylor outlined a highly bullish case for bitcoin’s price. The Nasdaq-listed Microstrategy recently invested $425 million in bitcoin as its primary reserve asset.


Saylor began by explaining that he has always been a big tech investor. “The thing about technology is figuring out the thing that’s going to eat the world. If you’re right, own it, hold it, and wait,” he advised. The CEO gave the example of Apple, Google, Amazon, and Facebook, emphasizing repeatedly that it does not matter when you bought those tech stocks. “The truth of the matter is if you’d bought Google, Apple, Amazon, or Facebook at any point between 2010 and 2020 … I think it’s impossible to have lost money at any point for the decade … your investment mistake would be trying to time the market on those things.”


The Microstrategy CEO added: “Bitcoin is the first software network in the history of the world that can pull monetary energy, so these bitcoiners have figured out something that is really a thing of beauty and extraordinary value. They are pulling pure monetary energy on a network.” He elaborated: If I take $100 million and I put it into bitcoin, it could sit there for a decade like in a battery. It won’t bleed out. You’re not losing 2% to 4% a year and I can put it in the palm of my hand and I can move it around the planet for a few dollars in a few minutes and we have never in the history of the world figured that out. Bitcoin Is Not So Volatile


One classic objection investors have to investing in bitcoin is its volatility. Speaking on the subject, Saylor said he has been looking at the volatility of different assets over the last three, four, and five months. He looked at 30-year Treasuries, 10-year Treasuries, the NASDAQ, the Russell 2000, gold, silver, Apple, Amazon, Facebook, Google, and more. After comparing their volatility to bitcoin, Saylor concluded: My unscientific view is on every single day at least half of those assets are more volatile than bitcoin. And on a lot of volatile days, I’ve seen 80% to 90% of them be more volatile than bitcoin.


“So I think there’s a historic narrative/belief. People think they know this is volatile but in fact, it’s not looking that volatile to me over the past three months. I don’t think over the next decade it’s going to have the same characteristics of volatility that it had over the last decade,” Saylor said.


The Microstrategy CEO proceeded to discuss how investors are using Apple’s stock as their store of value. “People are literally using Apple’s stock as a store of value because it’s deflationary. Apple is buying it back and they think Apple is not going anywhere and they’re desperate to flee [from] currency.” However, he pointed out that “Apple is more volatile than bitcoin for the past three months.” Bitcoin Is a Better Store of Value than Apple’s Stock or Gold


Besides Apple’s stock, gold is still investors’ favorite store of value. However, Saylor explained that neither are as good as bitcoin as a store of value.


“The truth is Apple’s stock is not scarce. The executive team can and will eventually print more and if that doesn’t dilute you then they’ve got regulatory risk, competitive risk, [and] execution risk — a lot of moving parts … that’s why they’re not good over the long term,” he detailed. As for gold, he said: “if you put $100 million into gold and the gold miners print 2% to 3% more a year, let’s say 2% more, well, over 100 years you lose 88% of your purchasing power.”


The CEO explained that these stores of value worked in the past because there was no alternative. However, things have changed. “In the year 2020, you have a choice, you have a digital gold,” he declared. “They cannot make any more. Bitcoin miners are the friends of bitcoin owners. They’re not the enemy of bitcoin owners.” He explained that to store $100 million for 100 years, you will lose 85% of it under the best case if you put it in gold. “Under the likely case, you lose it all because the bank will fail, the country will fail, [or] somebody will seize it,” he claimed.




Saylor presented bitcoin as the best solution: “The reason that the bitcoin maximalists … are passionate and religious about this is because for the first time in human history you can take all of your wealth and your life force. You can put it into an asset. You can keep the keys. You can take custody of your million dollars, your hundred thousand dollars. No government, no bank can take it away from you. There’s nobody to tell you you can’t own your life force, and if you have hopes and aspirations for your family, for your religion, for your life, then you have the power to achieve those hopes and aspirations without asking the permission of a bank or a government or politician.”


The Microstrategy CEO then spoke about the trillions of dollars currently in alternative assets that function as stores of value, including gold, technology stocks, and bonds. He proclaimed: There’s a $250 trillion ocean of assets. They are looking for the ideal store of value right now.


Maintaining that bitcoin is a better store of value than other assets he previously described, he emphasized: “bitcoin is digital gold. It’s better gold than gold and it’s a better store of value than big tech.” He believes that as investors understand this, “a lot of that monetary energy is going to flow from the asset ocean into the crypto pond and everybody that makes the transition is going to benefit.”


Do you agree with Michael Saylor’s vision for bitcoin? Let us know in the comments section below. Bitcoin Transaction Fees Spike 350% in a Month, as ETH Fees Decline MARKETS AND PRICES | 13 hours ago Commodity Analyst: "I Don"t See What"s Going to Stop Bitcoin From Appreciating" MARKETS AND PRICES | 2 days ago Tags in this story bitcoin bull, Bitcoin Price, bull case, Bullish, institutional investors, michael saylor, microstrategy, trillion dollar bitcoin


Image Credits: Shutterstock, Pixabay, Wiki Commons Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Network Landmarks, Derivatives Records- 2020 Bitcoin Metrics See a Number of All-Time Highs
Network Landmarks, Derivatives Records- 2020 Bitcoin Metrics See a Number of All-Time Highs While the price of bitcoin has spiked to levels not seen in three yea
Demand for Bitcoin Will See a Dramatic Shift in 8 Years – Retail Addresses to Eat up Entire New Supply
Demand for Bitcoin Will See a Dramatic Shift in 8 Years - Retail Addresses to Eat up Entire New SupplyA recent report from ZUBR Research explains that by 2028, retail demand for bit
Arijit Sarkar11 hours agoCoinbase launches regulated crypto futures services for US retail tradersCoinbase Advanced customers in the U.S. can trade nano-sized futures contracts sized at 1/100th of a Bitcoin and 1/10th of
Meme Tokens Slide 55% in 5 Months — DOGE, SHIB Dominate $14.9B Meme Coin Economy by 95%
Meme Tokens Slide 55% in 5 Months — DOGE, SHIB Dominate $14.9B Meme Coin Economy by 95% Five months ago, the top meme cryptocurrencies by market valuation were valued at $33.7 bi
Arunkumar Krishnakumar10 hours agoMaking real-world blockchain solutions possible — Solana co-founder Raj GokalWeb3 has had its ups and downs over the last few years, but does it have any real-world use cases?1255 Tota
Prashant Jha11 hours agoEU banking watchdog proposes liquidity rules for stablecoin issuersThe proposed guidelines are currently in the public consultation phase for the next three months and, if approved, will come into
Regulate Stablecoins – Don’t Squash Them
Nathan Kaiser is a founder of Eiger Law and a fellow at the Berkman Klein Center for Internet & Society at Harvard University. He has two decades of professional experience in Greater China focusing on corporate l
Rakesh Upadhyay6 hours agoPrice analysis 9/27: BTC, ETH, BNB, XRP, ADA, DOGE, SOL, TON, DOT, MATICBitcoin, and even some altcoins are holding steady even as the US dollar index steamrolls to a near 1-year high.1048 Total
Ripple and SBI Collaborate to Launch On-Demand Liquidity in Japan — XRP Surges
Ripple and SBI Collaborate to Launch On-Demand Liquidity in Japan — XRP Surges Ripple has launched its first On-Demand Liquidity (ODL) service implementation i
Fed Chair Jerome Powell Hints at Aggressive Rate Hikes After Saying ‘Inflation Is Much Too High’
Fed Chair Jerome Powell Hints at Aggressive Rate Hikes After Saying "Inflation Is Much Too High" The 16th chair of the Federal Reserve, Jerome Powell said that America’s &#x
Ana Paula Pereira4 hours agoAave pauses several markets after reports of feature issueThe pause affects multiple markets, including Aave V2 Ethereum Market and certain assets on Aave V2 on Avalanche. In addition, certain
330,000 Ethereum Withdrawn From Exchanges In 72 Hours – Supply Squeeze Incoming?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu