With several market analysts giving their takes on the key driver behind this renewed surge, MicroStrategy’s former CEO, Michael Saylor, recently expressed his view on the matter.
Inflation and Counterparty Risks Drive Bitcoin Adoption
In a recent CNBC interview, Saylor noted that two dynamics are pushing the broad adoption of Bitcoin. He revealed that the first one is the concern about inflation.
Saylor believes these issues result in the loss of confidence in fiat currencies, causing investors to turn to risk-off assets like Bitcoin:
“There’s the macroeconomic concern about inflation and as inflation takes place, people lose confidence in fiat currencies. That means they start to realize that everything valued on cash flow is a currency derivative and bitcoin is not valued on cash flows,” he explained.
The Bitcoin proponent further explained that the recent banking crisis, including the failure of Silvergate Bank, Signature Bank, Silicon Valley Bank, and the latest one, First Republic Bank, has undermined investors’ faith in the banking system.
“The failure of the banks… causes people in the Western world to start to lose a little bit of faith in the banking system and they remember that bitcoin is a bank in cyberspace run by incorruptible software… So the combination of that concern about inflation and counterparty risks with banks is driving bitcoin’s adoption,” he said.
MicroStrategy Not Backing Down From Long-term BTC Plan
Saylor reiterated that MicroStrategy has maintained its confidence in Bitcoin’s potential. Saylor noted that the business intelligence and software firm will continue to accumulate more of the digital asset despite suffering massive paper losses at one point on its approximately 140,000 BTC portfolio.
He explained that MicroStrategy, which recorded significant growth in Q1, was “a cash cow” to pay off interest on its debts while acquiring more bitcoin. He added,
“The real key with bitcoin is being able to hold on to it and stomach the volatility. We have conditioned our shareholders and our bondholders to understand that we’re long-term HODLers and because everybody is aligned in that interest, we’re able to weather that volatility and we end up doing very well as Bitcoin recovers.”
The post Global Loss of Confidence in Fiat Boosting Bitcoin Adoption: Michael Saylor appeared first on CryptoPotato.