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- Back in February 2020, most companies weren’t aware of Bitcoin strategy or even Bitcoin in the first place.
- Saylor foresees a future where assets providing negative growth will be “squeezed out,” while strong assets and currencies will prevail.
- Bitcoin is the world’s most secure database and network when it comes to cybersecurity threats.
Michael Saylor, Chairman & CEO of MicroStrategy, was recently invited to Vala Afshar’s weekly show DisrupTV. On Wednesday, the discussion involving Afshar, Saylor, and Ray Wang, CEO & founder of an advisory firm Constellation Research, broached Digital Transformation. The topic of discussion involved “the importance of institutional investing in cryptocurrencies,” reported ZDNet, a business technology news website.
Michael Saylor: A Brief Introduction
Michael J. Saylor co-founded the publicly traded business intelligence firm MicroStrategy (MSTR) in 1989. He’s also known as the creator and founder of one of the first home automation and security companies, Alarm.com, and cloud-based interactive voice response service providers, Angel.com. Apart from being named inventor on more than 40 patents, the American entrepreneur also wrote a 2012-published book titled “The Mobile Wave: How Mobile Intelligence Will Change Everything.” Moreover, Saylor founded and is serving as a trustee for the non-profit organization Saylor Academy, which has provided free education to more than 800,000 students.
An advocate for the Bitcoin Standard, Saylor is a massive supporter of Bitcoins (BTC) and believes it’s the most powerful and disruptive technology in human history. His MicroStrategy holds over 91,579 BTC ($5.8 billion) and pays its Board of Directors in Bitcoins.
Digital Transformation: An Accelerated Yet Profound Change
A digital transformation isn’t a sudden process and has been in talk for ages. In fact, we’ve constantly been evolving in the digital aspects of life. That said, the past 12-months had been an absolute mind-blower with the pace at which the world transformed. This gradual and recently accelerated digital transformation took place in mainly two areas; first, lines of business, including sales, services, and marketing with exclusively decentralized and digital engagements, which pushed the velocity and efficiency of companies and their operations to new heights. And second is in the transformation of assets, where Bitcoin swoops in. As Saylor pointed out, after digitizing photos, music, videos, and books, it was now gold, silver, bonds, stocks, and money’s turns. This digital transformation, albeit at a fast pace, is “a profound change” that impacts every single entity on Earth.
Bitcoin Was A Nobody Till February 2020
Back in February 2020, most companies weren’t aware of Bitcoin strategy, or even Bitcoin in the first place, nor did they pay any heed to it. Saylor said all the current treasury strategies “broken” if they encourage buying low-yielding bonds. With expanding supply, money is losing its purchasing power; that’s precisely the idea behind Bitcoin, for one to “recognize the loss of purchasing power, and then apply a different treasury strategy.” MicroStrategy was one of the firsts to designate Bitcoin as “the strongest treasury asset.”
Saylor held a “Bitcoin for Corporations” conference with corporate executives from over 1,400 firms on February 3-4, 2021, aiming to convince them of the benefit of Bitcoin for their portfolios. According to news reports, SpaceX executives were in attendance. And soon after, on February 8, Elon Musk’s Tesla announced the purchase of Bitcoins worth $1.5 billion. Saylor’s only disagreement with Musk was his suggestion for Tesla to buy $10 billion in Bitcoin.
While Bitcoin was increasing 200% per year for a decade, it went up by 800% in 2020, noted Saylor.
Benefits And Importance Of Crypto Investments
In cryptocurrency investments, the “first mover” advantage is vast; the firsts, first city, first country, or first company to invest in Bitcoin are greatly benefitted. By creating a dynamic with the assets trading up, firms get to generate investment income. For instance, in the ‘K-shaped’ recovery, while Wall Street firms raise their balance sheets by 25-40%, doing nothing, mainstream firms work 25-40% harder to gain nothing. As per Saylor, firms with asset-poor and manufacturing-rich business strategies are sailing against the wind. Even now, just 32 of the 40,000 publicly traded companies hold Bitcoin on their balance sheet. Saylor commented, Bitcoin was a consumer play in February 2020, but now it’s an institutional play; Bitcoin is “digital gold.” MicroStrategy was the first public platform to invest in Bitcoin, and Square and Tesla followed suit.
Analyzing the developments, Saylor infers the period from March 2020 to February 8, 2021, as ‘Year Zero’ of Bitcoin’s institutional adoption, and ‘Year One’ is the present for the next 36 months concerning legitimate institutional investments in Bitcoin.
Only The Strong Assets Shall Prevail
Saylor forecasts that the mobile wave will push people with access to digital wallets to over 8 billion, igniting the mobile revolution. The first layer of the payment network provides access to dollars or euros, or yen on compliant payment rails. The second layer serves saving accounts with high-quality assets, including Bitcoin, ETF, and stocks. Saylor foresees a future where assets providing negative growth will be “squeezed out,” while strong assets and currencies will prevail. He predicted the U.S. Dollar (USD) on the winning side with around 5 billion mobile wallets.
Saylor is convinced that Bitcoin is the world’s most secure database and network for cybersecurity threats. Bitcoin’s security threat is at the layer-two level.
Bitcoin: A Coin Of The Future
Seeing as Bitcoin has been consistently yielding an annual tax-free interest of around 200% for a decade, it’s a “good way to save money.” Saylor suggests a Bitcoin savings account is the best method of growing wealth. He believes the upcoming 12 months to exhibit an explosion of Bitcoin-based financial offerings.
Prachi Savita
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
