First time in a bear market? It is also the first Bitcoin (BTC) bear market for Michael Saylor, one of the biggest bitcoin bulls in the world.
The executive chairman of one of the world’s largest pro-Bitcoin companies, Saylor, 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 take a long-shot perspective.”
“If you are buying [Bitcoin] and you have less than a four-year time horizon, you’re just speculating. And once you have more than a four-year time horizon, then obviously your dollar cost is averaging.”
Dollar cost averaging is the way reducing exposure to the volatility of the investment. Saylor continued, “You buy an asset that you want to hold for a decade or more, which is a long-term store of value.”
IN 130,000 Bitcoins, Microstrategy owns 0.62% of the total Bitcoin supply, as the total Bitcoin mining is limited to 21 million. MicroStrategy’s entry price is roughly $30,639 per BTC, meaning the tech group’s overall investment is essentially underwater — if it were to sell for dollars.
Saylor, however, is puzzled by the loss — on paper — of billions of dollars, saying, “Don’t get caught up and look for the prize day after day, week after week.”
Billionaire compares Bitcoin’s valuation to the valuation of a home. He joked that “when you bought a house and then every time you went to a party you got drunk and then at 11 p.m. or midnight you came in and said, ‘How much are you going to pay for my house?’ I want to sell you my whole house right now. One might say: Well, I’m really not in the mood to buy a house. I’ll give you about half of what you paid for it, and then you’ll go home dejected and say, ‘I’ve lost all my money.’
Avoid that anxiety, he advised, and if you really need the money in the next 12 months, then it’s not investable capital, instead, Saylor explained, “It’s working capital.”
“The logical model is when you live in Argentina, you hold pesos for a month or two, you hold dollars for a year or two. You hold bitcoins 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 suggested by Saylor and Binance CEO Changpeng Zhao, take custody of your bitcoins. In light of yet another crypto exchange disappearing with customer funds, taking bitcoin into escrow is the only way to secure assets that cannot be seized.