- MicroStrategy CEO, Michael Saylor, has pointed out that Bitcoin is a worthwhile investment for anyone playing the long game
- He pointed out that any asset can work if your investment time horizon is one year
- But Bitcoin works if your investment time horizon is one century
In a recent tweet, the CEO of MicroStrategy, Michael Sayler, explained that Bitcoin was a long-duration asset. According to Mr. Sayler, any asset can work as an investment if ‘your investment time horizon is one year’. However, Bitcoin is a better option if ‘your investment time horizon is one century’. Below is his tweet pointing out that Bitcoin is a long-term investment.
If your investment time horizon is one year, anything might work. If your investment time horizon is one century, one thing might work. #Bitcoin
— Michael Saylor (@michael_saylor) October 10, 2020
‘I Don’t Understand Why Anyone Would Want to Trade [Bitcoin]’
Mr. Sayler’s idea of Bitcoin as an asset to hold for the long-term echos an earlier tweet in which he described Bitcoin as an ideal long-duration asset. Furthermore, he did not understand why investors opted to trade Bitcoin rather than holding it. His advice to hold Bitcoin and not to trade it also included a brief insight as to why MicroStrategy chose to purchase 38,250 Bitcoin rather than investing in traditional financial instruments.
I considered investing our treasury in fiat, bonds, stocks, swaps, index funds, options, real estate, commodities, precious metals, art, & intangibles before settling on #Bitcoin.
It seems like the ideal long-duration asset – I don’t understand why anyone would want to trade it.
‘Gold Peaked in the 19th Century, Buy Bitcoin’
Mr. Sayler’s tweeter page is a treasure trove of valuable financial information. Another tweet worth mentioning is one in which he explains that 21st-century investors lost trillions clinging to old investment ideas. He points out that Gold peaked in the 19th century and it was time to buy Bitcoin (BTC). Mr. Saylor’s tweet can be found below.
— Michael Saylor (@michael_saylor) October 5, 2020
Summing it up, and chiming in on Mr. Saylor’s words on Bitcoin, the idea of a scarce BTC is already embedded in its software code that caps its supply at 21 Million. This element of scarcity is further amplified when we take into consideration that approximately 7 million of the total Bitcoin has been lost through ‘silly’ mistakes such as throwing away an old computer with Bitcoin or losing private keys.
This leaves approximately 14 million Bitcoin available which is not enough to go around when we factor in the BTC holdings of companies such as Grayscale, Square and MicroStrategy.
Therefore, owning a slice of that 14 million BTC might not be a bad idea even if it is a few Satoshis. Neither is holding the BTC for a few years or even a century as Mr. Saylor suggests.