The recent extent of Bitcoin’s drinking prices is a sign of strength, no weakness, according to the strategy (MSTR) Executive President Michael Saylor.
Speaking on an episode of the Podcast “Coin Stories” by Natalie Brunell published on Friday, Saylor argued that the market is in a consolidation phase while longtime holders sell parts of their batteries and institutions are preparing for larger allowances. “If you zoom in and look at the one-year table, Bitcoin is up 99%,” he said. “Volatility comes out of the assets – it’s a very good sign.”
Saylor has described the current environment as the first adopters who bought Bitcoin at prices for a figure sell modest amounts to finance real world needs, such as housing or tuition fees.
He compared it to the employees of a high growth startup in liquidation of the purchase options, not as a loss of faith but as a natural step towards maturity. This process, he said, opens the way to businesses and large funds to enter once the volatility drops.
He rejected the concerns that the lack of Bitcoin cash flow makes it lower than traditional investments, stressing that many precious assets – from gold to art – also lack sources of income.
“Perfect money has no cash flow,” he said, adding that the institutions anchored in decades of action frameworks and links have been slow to adapt but will ultimately be forced to rethink.
Go beyond the value reserve
A central theme of the conversation was the thrust of the strategy to relegate credit markets using bitcoin as guarantee, going beyond the simple story of the value of value.
Saylor said conventional links are “hungry for yield” and under collateralized, while the instruments supported by Bitcoin can be structured to offer higher yields and a lower risk.
He described the rest of Products in Privileged Stock of the Company – strike, conflict, stride and stretching – which are designed to provide investors with yields up to 12% while being highly over -collateralized with Bitcoin.
In doing so, Saylor argued that the company gives Bitcoin type qualities in cash, which allows it to place in the credit and actions indices. “We give Bitcoin cash flows,” he said, forming it as a means of expanding institutional adoption and drawing more capital in the ecosystem.
The question S&P 500
Saylor also explained why the strategy has not yet been included in the S&P 500 despite its scale and profitability.
He said that the company had not become eligible this year following accounting rules and noted that Tesla had also waited beyond its first quarter of eligibility. It expects a possible inclusion as the market develops more comfortable with the Bitcoin cash model, which it dates at the end of 2024.
Transformation years
For the future, Saylor has described the rise of Bitcoin cash companies as analogues in the first days of the petrochemical industry, with several products, commercial models and fortunes emerging in a chaotic but transformative decade.
He predicted that Bitcoin would continue to appreciate at an average rate close to 29% per year over the next two decades, fueling new forms of credit and capital instruments.
In closing, he brought an optimistic tone both on Bitcoin and the company, saying that a large part of today’s online toxicity is amplified by boots and paid campaigns rather than real dissatisfaction.
“Bitcoin is a peaceful, fair and fair way for us to settle our differences,” he said. “While everyone kisses him, peace will propagate, equity will propagate, equity will spread.”