The first bear market? This is also the first bitcoin bearer market (BTC) for Michael Saylor, one of the biggest proponents of the cryptocurrency.
The executive chairman of one of the world’s largest pro-Bitcoin companies, Saylor took time out of his busy schedule at the Pacific Bitcoin conference in Los Angeles to speak with Cointelegraph. In particular, he told Cointelegraph, when it comes to bitcoin, “you have to take a long-term view.”
“If you buy [du bitcoin] and you have a horizon of less than four years, you are just speculating on it. And when you have a horizon of more than four years, then the obvious thing is to average the costs in dollars. »
The cost averaging method is a way to reduce an investment’s exposure to volatility. Saylor continues, “You buy the asset that you want to hold for a decade or more, which is the long-term store of value. »
At 130,000 BTC, MicroStrategy owns 0.62% of the total bitcoin supply, and the total number of mined bitcoins is limited to 21 million. MicroStrategy’s entry price is around $30,639 per BTC, which means that the total investment of the technology group is too low – if it were sold for dollars.
However, Saylor is not worried about the loss – on paper – of billions of dollars. He says, “Don’t get carried away and look at the price day by day, week by week. »
The billionaire compares bitcoin’s valuation to the value of a house. He joked that “if you bought a house and every time you went to a party you got drunk, and at 11 pm or midnight you walked up and said, ‘How much are you going to pay for my house? ? I want to sell mine. whole house for you right now. Someone might reply, “I’m not really in the mood to buy a house. I’ll take half what you paid for it, and you’ll go home discouraged, saying, “All my money is lost I have. “
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“Avoid that worry,” he said, “and if the money you’ve invested in the next 12 months is really needed, it’s not capital you should have invested, but more like working capital, ” explained Saylor.
“A logical model is if you live in Argentina, you have pesos for a month or two, you have dollars for a year or two. You have bitcoins for a decade or two. And when you think about it in those frequencies and time frames, it all starts to make sense. »
Finally, as Saylor and Binance CEO Changpeng Zhao suggested, keep your bitcoins safe. In light of other cryptocurrency exchanges disappearing with client funds, custody of your Bitcoins is the only way to gain ownership that cannot be confiscated.