First bear market? It is also the first Bitcoin (BTC) bear market for Michael Saylor, one of the world’s biggest Bitcoin bulls.
Saylor, executive chairman of one of the world’s largest pro-Bitcoin companies, took a moment from his busy schedule at the Los Angeles Pacific Bitcoin conference to speak with Cointelegraph. Crucially, Saylor told Cointelegraph that when it comes to Bitcoin, “you have to look at a long time span.”
‘If you buy [Bitcoin] and you have a time horizon of less than four years, you’re just speculating on it. And once you have a time horizon of more than four years, then the obvious thing is that your dollar cost average.
Dollar-cost averaging is a way to reduce an investment’s exposure to volatility. Saylor continued, “You buy the asset you want to keep for ten years or more, which is the long-term store of value.”
With 130,000 BTC, MicroStrategy owns 0.62% of the total Bitcoin supply, as the total Bitcoin mined is limited to 21 million. MicroStrategy’s entry price is around $30,639 per BTC, meaning the technology group’s total investment would be significantly under water – if they were to sell for dollars.
However, Saylor is baffled by the loss — on paper — of billions of dollars, saying, “Don’t get caught up in looking at the price day by day, week by week.”
The billionaire likens valuing Bitcoin to valuing a home. He joked that “if you bought a house and every time you went to a party you got drunk, and then at 11 p.m. or midnight you would walk up to you and say, ‘How much are you willing to pay for my house?’ I want to sell you my whole house now.’ Someone might say, Well, I’m not really in the mood to buy a house. I’ll give you about half of what you paid for it,’ and then you go home despondent and say, ‘I’ve lost all my money.’”
Related: Bitcoin May Need $1 Billion More On-Chain Losses Before Hitting New BTC Price Floor
Avoid that fear, he advised, and if you really need the money in the next 12 months, it’s not investable capital; instead, Saylor explained, “It’s working capital.”
“A logical model is that if you live in Argentina, you hold pesos for a month or two, you hold dollars for a year or two. You’ve been holding Bitcoin 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, take custody of your Bitcoin. In light of another crypto exchange disappearing with customers’ funds, taking Bitcoin into custody is the only way to ensure that assets cannot be seized.
Stay connected with us on social media platform for instant update click here to join our Facebook
Denial of responsibility! TechnicalRipon.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – firstname.lastname@example.org . The content will be deleted within 24 hours.