Despite the bear market, Michael Saylor still believes Bitcoin is virtually guaranteed to reach a one million dollar price tag. He thinks that Bitcoin has already “crossed the chasm” of answering the two most critical questions surrounding it, making its success inevitable.
Bitcoin is Really Happening
In an interview with CNBC’s Squawk Box on Tuesday, the MicroStrategy CEO was challenged on his bullish Bitcoin thesis. The interviewer posited that Bitcoin’s regulation and “maturity” could see significant “flush cash” and “leveraged money” wiped from the market. This, in turn, would cause Bitcoin’s price to drop substantially, harming both Saylor’s company and Bitcoin’s long-term growth.
MicroStrategy recently took out a Bitcoin collateralized loan with Silvergate bank, in order to purchase more Bitcoin. Bitcoin’s price has dropped significantly since then, bringing it closer to the company’s liquidation point of $21,000. However, Saylor has clarified that the company would post more Bitcoin as collateral for the loan, down to $3,562.
In the CEO’s view, Bitcoin’s success is inevitable – and responsible regulation of the asset would cement that rather than interfere.
“The big question forever has been ‘is this real’, and if it’s real, ‘is it gonna be banned’,” he said. In his view, the United States’ decision to responsibly and thoroughly regulate Bitcoin clears up both questions.
In October, Federal Reserve Chairman Jerome Powell confirmed that he had “no intention” to enact a China-style ban on Bitcoin. This March, President Biden issued an executive order organizing research responsibilities among top Federal agencies related to crypto.
Even Treasury Secretary Janet Yellen – a long-time crypto skeptic – highlighted crypto’s role in financial innovation in a recent speech. She claimed that such financial innovations that improve our lives should be responsibly “embraced.”
Such developments have helped establish Bitcoin’s legitimacy, despite years of skepticism surrounding it.
“So if the deniers are wrong, and if the skeptics are wrong… it’s not going to zero – and if it’s not going to zero, it’s going to a million,” explained Saylor.
There is No Second Best
The CEO also argued that Bitcoin effectively has no competitors. Assets like gold, he claimed, are inferior in all respects regarding “what gold wants to be.” Many have taken to calling Bitcoin “digital gold” for this reason, as it mimics gold’s scarcity while retaining the portability of digital items.
The billionaire said that Bitcoin would already reach $500,000 by simply matching the market cap of gold.
“Bitcoin is – like it or not – unique,” he said. “There really is no network in the world that has its level of adoption or its level of security.”
Senator Cynthia Lummis recently put forward a bill that would guarantee Bitcoin’s status as a commodity and not a security.