First time Bear market? Advice from Bitcoin Bull Michael Saylor

Homeowners don’t check the price of their homes while drunk at a party, so why check the price of Bitcoin in that way, Michael Saylor joked.

First-time bear market? It’s also the first Bitcoin (BTC) bear market for Michael Saylor, one of the world’s biggest Bitcoin bulls. 

Executive chairman of one of the world’s largest pro-Bitcoin companies, Saylor took a moment out of 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 frame time perspective.”

“If you’re buying [Bitcoin] and you’ve got less than a four-year time horizon, you’re just speculating in it. And once you’ve got more than a four-year time horizon, then the obvious thing is you dollar-cost average.”

Dollar-cost averaging is a way of reducing exposure to the volatility of an investment. Saylor continued, “You buy the asset that you want to hold for a decade or longer, which is the long-term store of value.”

At 130,000 BTC, MicroStrategy owns 0.62% of the total supply of Bitcoin, as the total Bitcoin mined is restricted to 21 million. MicroStrategy’s entry price is roughly $30,639 per BTC, meaning the technology group’s total investment is substantially underwater — were they to sell for dollars.

Saylor (right) with Cointelegraph reporter Joe Hall.

However, Saylor is nonplussed about the loss — on paper — of billions of dollars, stating, “Don’t get caught up and looking the price day to day, week to week.”

Michael Saylor on stage at Pacific Bitcoin with Swan CEO Cory Klippsten (right). Source: YouTube

The billionaire compares valuing Bitcoin to valuing a home. He joked that “if you bought a house and then every time you went to a party, you got drunk, and then at 11 pm or midnight, you walked up and said, ‘How much will you pay for my house? I want to sell you my entire house right now.’ Someone might say, ‘Well, I’m not really in the mood to buy a house. I’ll give you like half of what you paid for it,’ and then you’ll go home despondent, saying, ‘I lost all my money.’”

Related: Bitcoin may need $1B more on-chain losses before new BTC price bottom

Avoid that anxiety, he advised, and if you really do need the money in the next 12 months, it’s not investable capital; instead, Saylor explained, “It’s working capital.”

“A logical model is if you live in Argentina, you’re holding pesos for a month or two, you’re holding dollars for a year or two. You’re holding 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 Saylor and Binance CEO Changpeng Zhao suggested, take custody of your Bitcoin. In light of another crypto exchange vanishing with customers’ funds, taking custody of Bitcoin is the only way of ensuring property that cannot be confiscated.

Related Posts

BlackRock CEO: FTX caused its downfall, but Bitcoin is still revolutionary for the evolution of financial markets

The BlackRock CEO still sees crypto assets as revolutionary, even though he disagrees with the issuance of tokens by centralized exchanges. The CEO of the asset management…

IOTA: Holders of $SOON can stake their tokens, get massive discounts and more – Report

Soonaverse brings a staking feature for its $SOON tokens with 2x rewards points for disciplined stakers. It will also bring a greater level of decentralization to how…

Turning Garbage Into Digital Gold: The Rise Of Landfill Bitcoin Mining

Powering bitcoin mining operations with landfill waste is the latest trend in sector growth as miners capitalize on wasted and stranded energy resources. Powering bitcoin mining machines…

Blur Airdrop 2 Is Scheduled For Monday: Is Free Money Season Back?

NFT marketplace, Blur is back with a second airdrop for its users. In a tweet on Wednesday, November 30, Blur announced that its airdrop 2 would arrive…

Russian Billionaire and Crypto Businessman Dies in Helicopter Crash in France

Russian financier and cryptocurrency entrepreneur Vyacheslav Taran has been killed in a helicopter crash on French territory. The accident marks the latest in a series of deaths…

Binance Plays Chess With Troubled Crypto Firms Struck by FTX Contagion

Binance continues with auditing and acquisitions following the collapse of rival exchange FTX, the contagion from which continues to spread. With the collapse of FTX, other crypto…

Generated by Feedzy