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‘Bitcoin has no existential threats,’ institutional investment pioneer says

'Bitcoin has no existential threats,' institutional investment pioneer says

MicroStrategy CEO Michael Saylor has said bitcoin does not have any existential threats over its primary use case even if outlawed in the future. 

Speaking to Kitco News, Saylor said the number one ranked digital asset is bound to dominate the 21st century as a store of value. He believes if the asset is regulated as a form of currency, the store of value status remains intact.

“I think that Bitcoin is going to be the emerging strong money store of value asset in the 21st century. There are 8 billion people that need strong money or a monetary asset. If they’re going to live a decent life, that asset needs to be digital,” said Saylor. 

He maintained that bitcoin is a crypto asset that is not competing with the dollar but with other class assets like gold.

Saylor cited the case of Turkey, where the country banned bitcoin as a currency but failed to disband it as an investment platform. He noted that Tukey’s move is no different from the 2014 IRS regulation that taxes the transfer of cryptocurrencies. Saylor added that restricting bitcoin as a currency aims at protecting local currencies. 

The executive further stated that in regulating the crypto space, authorities would focus on other blockchain applications that allow the transfer of large sums of capital, like stablecoins.

MicroStrategy has no plans to invest in ethereum

With ethereum hitting a new all-time high above $3,400, Saylor noted that Microstragy does not plan to invest in the asset. He said ethereum is an application crypto unlike bitcoin, a store of value asset. 

He warned that getting into the application space is risky due to associated challenges like centralization. 

“I don’t think it’s appropriate for corporate treasury, and it’s not really appropriate for us. Our business is to acquire and, and to hold bitcoin. I think that crypto applications will be appropriate for crypto venture funds and crypto-specific technology investors,” Saylor added. 

Microstrategy was the pioneer institution to invest in bitcoin. Other institutions like (NASDAQ: TSLA), Visa (NYSE: V) and PayPal (NASDAQ: PYPL) also joined the suit, pushing the asset to the ongoing bull run. 

Watch the video: Bitcoin will dominate 21st century

Michael Saylor, CEO of MicroStrategy, said that even if Bitcoin’s use as a form of payment is regulated or even outlawed, the world’s largest cryptocurrency would still not face any threats to its primary use case, which is a store of value, and so no existential threat should be considered.

Featured image via Kitco YouTube.

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