Bear market for the first time? It is also the first Bitcoin (BTC) bear market for Michael Saylor, one of the biggest Bitcoin bulls in the world.
Saylor, CEO of one of the world’s largest pro-Bitcoin companies, took a moment from his busy schedule at the Bitcoin Pacific conference in Los Angeles to speak to Cointelegraph. Crucially, Saylor told Cointelegraph that when it comes to Bitcoin, “one has to take a long-term perspective.”
“If you are buying [Bitcoin] and you have a time horizon of less than four years, you are just speculating. And once you have a time horizon of more than four years, the obvious thing is your average dollar cost.”
Dollar cost averaging is one way to reduce the volatility exposure of an investment. Saylor continued: “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, as the total Bitcoin mined is capped at 21 million. MicroStrategy’s entry price is roughly $30,639 per BTC, which means the tech group’s total investment is substantially under water, if it were to sell for dollars.
However, Saylor is baffled by the loss, on paper, of billions of dollars, saying, “Don’t get sucked in and look at the price day by day, week by week.”
The billionaire compares the valuation of Bitcoin to that of a house. He joked that “if you buy a house and then every time you go to a party, you get drunk and at 11pm or midnight you walk up and say, ‘How much would you pay for my house? I want to sell you my whole house right now.’ Someone might say, “Well, I’m not in the mood to buy a house. I’ll give you about half of what you paid for it,” and then you go home dejected, saying, “I’ve lost all my money.”
Avoid that anxiety, he advises, and if you really need the money in the next 12 months, it’s not investable capital; instead, Saylor explains, “it’s working capital.”
“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 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 both Saylor and Binance CEO Changpeng Zhao suggested, take custody of your Bitcoin. In light of the demise of another cryptocurrency exchange holding customer funds, taking custody of Bitcoin is the only way to guarantee property that cannot be confiscated.
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