Yesterday Binance posted on its blog the must-see highlights from the conversation between the crypto exchange CEO Changpeng Zhao and MicroStrategy CEO Michael Saylor.
Changpeng Zhao and Michael Saylor share a crypto moment
For those of you who don’t know, earlier this year, the CEO of MicroStrategy announced that the company would buy Bitcoin with part of its investment strategy.
Since then the company’s move has been widely debated in the crypto market, firstly because of what that meant for the cryptocurrency and secondly because the company benefited from Bitcoin’s huge appreciation.
So Changpeng Zhao, CEO of one of the largest crypto exchanges on the market, couldn’t stop having a conversation Michael Saylor. Also, the conversation was moderated by Binance Regional CEO Josh Goodbody.
Do you want to know why Michael Saylor decided to acquire Bitcoin? Here is the answer!
Is Bitcoin a safe haven?
During the conversation Saylor admitted that he had not paid attention to the crypto industry until March of this year. And, the reason you pay attention to it is that, as we already know, the US economy experienced a significant expansion of the money supply.
«The most important monetary event is the expansion of the M2 money supply. We had an annual expansion of 5.5% for a decade, but this year it took a jump of approximately 24% and, going forward, it will expand by 15% every year for the next 5 years »Saylor explained.
Thus, If you are not outpacing the money supply with your returns and investments, you cannot preserve wealth. You cannot store value … A bond that does not yield 15% is losing its value »explained the CEO of MicroStrategy.
Thus, Saylor argues that fiduciary investments can lose value through inflation. Specifically, it points out that, in essence, everyone will lose half their wealth if they do not find a solution to the problem.
Hello to Bitcoin
Keeping in mind what Saylor explained, we can understand why there is an unbridled struggle to find a store of value.
“We know that cash will not work and we know that bonds, real estate, and securities or trust instruments will be degraded by the rate of expansion of the money supply. You search through gold and eventually settle on the idea of a perfectly designed digital gold, something that is superior to gold in all respects »Saylor explained.
So once he found Bitcoin he thought: “Bitcoin is the ultimate safe haven asset and store of value for all investors around the world.” And as for gold, Saylor dismisses it as outdated.
Institutional investors fall in love with crypto
One of the most frequent questions asked by the crypto market before 2020 was: “When will institutional investors join the crypto market?”
As we have seen, MicroStrategy was one of the pioneers but not the only one. This year the crypto market has seen institutional investors come together and demand crypto.
Will the BTC market expand?
Michael Saylor explained that, prior to March, Bitcoin was exclusively considered a speculative asset.
“March was a wake-up call. April was a search for the truth, to rethink everything I believed about macro investments. In May, it was clear to me that Bitcoin was the future »Saylor said.
In this way, Saylor explained that there will be three types of investors that Bitcoin will earn:
- People who put their money in gold (roughly $ 10 trillion).
- Those with bonds (approximately $ 17 trillion).
- Those who invest in great technologies.
“All three types of people are looking for a store of value. Among these three types of investors there are 150 billion dollars ». Thus, Saylor notes that there is room for a growth in the market capitalization of Bitcoin.