Renowned Bitcoin advocate and chair of MicroStrategy Inc., Michael Saylor, ignited discussions in the investment realm by sharing a compelling chart on Saturday, March 23. This chart juxtaposed Bitcoin’s performance against traditional assets such as the S&P 500, Nasdaq, gold, silver, and bonds, reaffirming Bitcoin’s prominence in the investment landscape.
Saylor seized the opportunity to emphasize Bitcoin’s superiority, highlighting its remarkable growth of 432% compared to the S&P 500’s 56% and Nasdaq’s 50% over the same period. Conversely, silver and bonds witnessed downturns of 13% and 19%, respectively, while gold registered a modest 7% gain.
‘Volatility is Vitality’
In the wake of Bitcoin’s meteoric rise to a record high of $73,797 on March 14, followed by a subsequent decline of nearly 12%, Saylor addressed the cryptocurrency community’s concerns regarding market volatility. Through social media channels, he expressed his perspective on volatility, equating it with vitality. Saylor argued that fluctuating prices are intrinsic to market dynamics, portraying them as natural phenomena rather than causes for alarm.
Under Saylor’s guidance, MicroStrategy has reaffirmed its commitment to Bitcoin by significantly increasing its holdings. A recent press release revealed the acquisition of over 9,000 BTC between March 11 and 18, financed through convertible senior notes offerings and company cash reserves. This purchase, coupled with a successful private offering raising $603.75 million, bolstered MicroStrategy’s Bitcoin treasury reserves to approximately 214,246 BTC at an average price of $35,160 per Bitcoin.
Peter Schiff Counters
However, not all voices echo Saylor’s enthusiasm for Bitcoin. Economist Peter Schiff, known for his skepticism towards cryptocurrencies, raised concerns regarding Saylor’s aggressive approach to Bitcoin investment. Following 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 pointed out that Bitcoin remained down by 15% from its peak at the time. He warned against potential market downturns now that Saylor appears to have completed his buying spree, suggesting the possibility of a significant drop. Schiff projected potential losses for MicroStrategy, estimating losses of $3.25 billion if Bitcoin plummeted to $20,000 and $5.5 billion if the coin’s price dropped to $10,000.
