March 27, 2024
By Anjali Kochhar
Bitcoin the popular digital currency is making headlines again, this time with Michael Saylor, the chair of MicroStrategy Inc., praising its performance against traditional assets. Saylor recently shared a chart comparing Bitcoin’s growth with assets like the S&P 500, Nasdaq, gold, silver, and bonds.
According to Saylor’s chart, Bitcoin has surged by a staggering 432% during a specific period outshining the S&P 500 and Nasdaq which saw gains of 56% and 50%, respectively. On the other hand silver and bonds faced losses, dropping by 13% and 19%, while gold managed a modest 7% gain.
Saylor known for his optimistic outlook on Bitcoin sees its rise as a testament to its strength in the investment world. Despite recent market volatility where Bitcoin reached a record high of $73,797 and then experienced a 12% decline, Saylor remains bullish and emphasising that volatility brings vitality to the market. He believes that price fluctuations are a natural part of Bitcoin’s dynamics and not a cause for concern.
Under Saylor’s guidance MicroStrategy has been actively acquiring Bitcoin. In a recent announcement, the company revealed purchasing over 9,000 BTC between March 11 and 18. This acquisition was funded through a mix of convertible senior notes offerings and company cash reserves, following a successful private offering that raised $603.75 million. MicroStrategy’s Bitcoin treasury now holds approximately 214,246 BTC acquired at an average price of $35,160 per Bitcoin.
However, not everyone shares Saylor’s enthusiasm for Bitcoin. Economist Peter Schiff, known for his skepticism towards cryptocurrencies, expressed concerns about MicroStrategy’s aggressive Bitcoin investments. Schiff highlighted the high-risk nature of such investments, citing Bitcoin’s volatility as a potential drawback. Despite Saylor’s confident buying strategy, Schiff noted that Bitcoin was still down 15% from its peak at the time of his statement.
Schiff warned against potential market downturns now that Saylor seems to have completed his Bitcoin buying spree. He cautioned that if Bitcoin were to drop to $20,000, MicroStrategy could face losses of $3.25 billion, escalating to $5.5 billion if the price fell to $10,000.
The contrasting views of Saylor and Schiff highlight the ongoing debate surrounding Bitcoin’s role in investment portfolios. While Saylor sees Bitcoin’s performance as a sign of strength and vitality, Schiff remains cautious, emphasising the risks associated with its volatile nature. As Bitcoin continues to capture attention in financial markets, discussions about its long-term stability and viability as an investment asset are likely to persist.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
