Despite suffering an unrealized loss of over $1 billion in Bitcoin in the current bear market, Michael Saylor’s faith in the asset is unwavering. Amid fears of Bitcoin freefall on Tuesday, he said his firm was well prepared for such a situation. His firm Microstrategy made provisions for volatility before adopting a Bitcoin strategy, he explained.
‘Bitcoin, The Best Performing Asset’
Speaking to CNBC on Wednesday, Saylor said his firm had back-tested its Bitcoin strategy against every other alternative. Michael Saylor said the firm’s Bitcoin strategy was done when Microstrategy took the Bitcoin plunge back in August 2020.
In fact, he emphasised on why he thinks Bitcoin would go on to be the best performing asset in long term. Over any time frame, be it two, five or ten years, BTC is the best performing asset, he affirmed.
The Microstrategy CEO further stated that the cross over point for holding Bitcoin in profits is four years. The moving average of BTC over four years is an average of $21,685, he said.
“Nobody had ever lost money after investing in Bitcoin for four years. The simple moving average of BTC over four years is $21,685.”
Michael Saylor Bitcoin Strategy: The Great Entry Point
Incidentally, Bitcoin is currently trading in the same price range as the simple moving average that Saylor mentioned. As of writing, BTC is trading at $21,376, down by 5.53% in the last 24 hours, according to CoinMarketCap.
When asked if it is a great buying opportunity now, he replied, “Absolutely.” Bitcoin is backed by the most powerful computer network in the world. It is beyond a nation-state attack or a corporate attack. There is nothing like it in the world. So this is the ideal entry point to get into Bitcoin, he explained.
On concerns over Bitcoin’s steep fall in the last few days and talk of his firm’s likely margin call, he said,
“On a multibillion-dollar balance sheet, we have only got a $200 million loan that we have to collateralize and we are 10X over-collateralized on that right now.”
Microstrategy’s total Bitcoin holdings stand at 129,918 coins purchased at an average $30,700. The firm is the largest institutional holder of BTC behind Tesla and South American country El Salvador.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/amid-crash-michael-saylor-suggests-this-entry-point-for-bitcoin/