Michael Saylor still believes that Bitcoin will reach a one million dollar price tag, even though the current market is bearish. He thinks that Bitcoin has already answered the two most critical questions surrounding it, making its success inevitable.
On Tuesday, during an interview on CNBC’s Squawk Box, the MicroStrategy CEO was pressed on his Bitcoin bull case. The interviewer asked if regulation and “maturity” might lead to a substantial deletion of “flush money” and “leveraged money.”
In addition, this would have the effect of pushing Bitcoin’s price lower, both harming Saylor’s company and dampening long-term growth in Bitcoin.
Silvergate bank provided a Bitcoin collateralized loan to MicroStrategy in order to acquire more Bitcoin. Since then, Bitcoin’s price has plummeted, bringing it closer to the firm’s liquidation threshold of $21,000.
According to Saylor, however, the firm will post even more Bitcoin as collateral for the loan, down to $3,562.
The CEO believes that Bitcoin will be successful in the long run. He also thinks that responsible regulation of Bitcoin would help it become even more successful.
Federal Reserve Chairman Jerome Powell has “no intention” of adopting a China-style ban on Bitcoin, according to him in October. In March, President Biden issued an executive order to create a research group to study crypto among top Federal agencies.
In a recent speech, US Treasury Secretary Janet Yellen – who has long been a crypto skeptic – acknowledged the role of cryptocurrency in financial innovation. She believed that financial innovations such as bitcoin should be treated with caution, but nevertheless responsibly “embraced.”
Bitcoin has been around for many years and has faced a lot of skepticism. However, developments in recent times have helped to establish its legitimacy.
There is no comparison to be made.
The CEO also claims that Bitcoin has no real rivals. Gold, according to Mr. Gendron, is substandard in every way as compared with what gold “wants to be.” Because it emulates gold’s scarcity while maintaining the convenience of digital goods, it has been dubbed “digital gold.”
By simply matching the market value of gold, Bitcoin will already surpass $500,000, according to the billionaire.
Cynthia Lummis just introduced a bill that would guarantee that Bitcoin is not considered a security, but rather a commodity.