‘Bitcoin is winning’ says MicroStrategy chair Michael Saylor
Prominent Bitcoin (BTC) advocate and MicroStrategy Inc. chair Michael Saylor shared a chart on Saturday, March 23 comparing Bitcoin’s performance with traditional assets like the S&P 500, Nasdaq, gold, silver, and bonds.
Saylor took it as an opportunity to assert Bitcoin’s supremacy in the investment landscape.
According to the chart, Bitcoin has grown 432% in that time, compared to 56% for the S&P 500 and 50% for Nasdaq.
Conversely, silver and bonds have performed dismally, losing 13% and 19% of their value, respectively, while gold registered a modest 7% gain.
‘Volatility is vitality’
Following Bitcoin’s meteoric rise to a record high of $73,797 on March 14, the digital currency experienced a subsequent decline of nearly 12%, sparking debates within the cryptocurrency community.
Saylor, renowned for his bullish stance on Bitcoin, took to social media to share his perspective on the market’s volatility.
Volatility, in his view, equals “vitality.” The fluctuating prices are integral to the market’s dynamics, Saylor argues, portraying them as a natural phenomenon rather than a cause for alarm.
Under Saylor’s guidance, MicroStrategy has solidified its commitment to Bitcoin, significantly increasing its holdings.
In a recent press release, the company disclosed the acquisition of over 9,000 BTC between March 11 and 18, financed through a combination of convertible senior notes offerings and company cash reserves.
This latest purchase comes on the heels of the company’s successful private offering, which raised $603.75 million.
With this influx of funds, MicroStrategy seized the opportunity to bolster its Bitcoin treasury reserves, now totaling approximately 214,246 BTC at an average price of $35,160 per Bitcoin.
Peter Schiff counters
However, not everyone shares Saylor’s enthusiasm for Bitcoin. Economist Peter Schiff, known for his skepticism towards cryptocurrencies, expressed concerns regarding Saylor’s approach to Bitcoin investment.
Following Saylor’s announcement of MicroStrategy’s latest BTC buy, Schiff cautioned against the high-risk nature of aggressive Bitcoin accumulation, citing the volatile nature of digital currencies as a potential pitfall.
Despite Saylor’s assertive leveraged purchasing, Schiff noted that Bitcoin remained down by 15% from its peak at the time.
He cautioned against further market downturns now that Saylor appears to have completed his buying spree, suggesting that the market could experience a significant drop.
Schiff projected potential losses for MicroStrategy, stating that if Bitcoin plummeted to $20,000, the company could incur losses totaling $3.25 billion, escalating to $5.5 billion if the coin’s price dropped to $10,000.
