MicroStrategy CEO Michael Saylor has showered praises on bitcoins as he labels it a $250 billion solution to a $250 trillion worth of problems.
In the webinar that he did today, the CEO branded the leading digital as one of the best things to ever happen to humankind. Recall that MicroStrategy now holds 38,250 Bitcoins after they made large scale purchases around August and September.
Presently, the business analytics firm owns the highest number of bitcoin among all publicly traded companies. The firm now holds a total of $520 million in the digital asset.
Saylor explains why MicroStrategy purchased massive amounts of Bitcoin
In the webinar, Michael Saylor explained why the analytics company purchased Bitcoins worth around $425 million. In his explanation, Saylor pointed to his earlier statement about a $250 trillion market for other digital assets.
Explaining his earlier statement, Saylor said, “99.9% of all the assets in the world are in ‘alt’ assets—$250 trillion in bonds, stock, real estate, precious metals, derivatives and in contrast, there’s just a $250 billion market cap for Bitcoin.” Explaining what he meant by Alternative assets, Saylor said that they are markets that are not stocks, bonds, or certificates.
This explanation means that Saylor might be reclassifying the assets category as anything that is not Bitcoin is classified as an alternative asset. Presently, the total value of the world’s assets is unknown majorly because of the subjective price of CryptoKitties.
However, going by Saylors narrative, one assumes that the total assets should be worth roughly around $500 trillion. The biggest contributor to the total assets worth will be the real estate market, with the market worth about $280 trillion.
MicroStrategy CEO says bitcoin is the answer to the inflation issues
Even if the number is not taken into consideration, Saylor still has a very strong point. “In an environment where you’re expanding the monetary supply, you’re sucking the energy out of a unit of currency,” Saylor said. This point is seemingly referring to the decision of the US Federal Reserve to increase the supply of money to exceed the previous 2% inflation volume targeted.
If this is done, then all the equities and bonds would have to be valued at discount rates. This is where Saylor sees the $250 trillion problems. This automatically means that all the assets would lose their worths if the buying power of the currency takes a nosedive.
According to Saylor, Bitcoin is the only solution because the digital asset has a fixed supply and cannot be affected by inflation. “99.9% of the people don’t understand the answer, but with a $250 billion market cap, we’re a bit past the point where government regulators, hackers, or others could have snuffed it out, Saylor said.
Michael Saylor was previously known to be a bitcoin basher before accumulating mass amounts of digital assets. The MicroStrategy CEO said in a tweet in 2013 that Bitcoins days were numbered.
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