Michael Saylor Was Wrong For Investing In Bitcoin Over Ethereum
Famous crypto entrepreneur and Bitcoin’s biggest fan, Michael Saylor, missed the chance to make more from investing in Ethereum than Bitcoin.
According to the report, the CEO of MicroStrategy could have gained more had he been flexible as a trader with his investment decisions. Recall that Michael Saylor became famous for his bullish stance on BTC and for ensuring his company’s reserve was mainly in Bitcoin.
He was previously quoted as saying that Bitcoin has no equal in the industry. However, his earlier assumption about the leading crypto token seems to be faulty, thanks to a report from a new website showing that there is indeed a “second best” among digital coins.
For emphasis, the website developers created another crypto portfolio for MicroStrategy’s boss with no Bitcoin. Again, the trading simulations show that Saylor purchased Ethereum instead of Bitcoin, and the outcome was profitable.
Compared to the Bitcoin portfolio, Ethereum will earn Saylor roughly $1.5 billion in profit, per the simulation. Meanwhile, this contrasts with his company’s massive $1.3 billion loss. Another exciting thing to take into account is Ethereum staking.
Going by the previous and current rates, the CEO could have grown the value of his portfolio to 229,680 ETH, which was worth roughly $350 million at that time. On the other hand, even if he opts to transfer all his BTC to Ethereum and stake them, MicroStrategy could have raked in close to $133 million in profit.
An Important Consideration
Talking about whether an investment will be the right move appears easier than making it. In this case, and based on the technical outcome of the investment simulation, Saylor would have expanded his investment portfolio by accommodating more volatile funds.
Furthermore, during the 2021 bull run, assets like AVAX, SOL, and others offered higher profits than most top currencies. Conversely, ETH displays a higher volatility rate during market rallies. However, the differences in the maturity levels of both assets are the main reason for this varying volatility rate.
According to expert opinions, had Saylor been flexible with his investment approach, this would have done MicroStrategy investors a great favor.
Despite Bitcoin’s bumpy ride, MicroStrategy has continued to buy more to shore up its reserves. Most of the company’s investment decisions are related to Bitcoin, with the firm raising cash in many forms to keep up with its buying spree.
However, critics point out that the Bitcoin buying spree is down to the decision of only one man, Michael Saylor. Even as Bitcoin continued to drop, MicroStrategy continued to raise its purchase of the coin. Meanwhile, it has reached a stage where analysts note that the company’s Bitcoin drive will become more volatile.
There are no indications that the rough patch is over or will be over soon. So the firm’s ability to handle this tricky situation will be interesting to watch.
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