- Bitcoin investment is like owning valuable Manhattan real estate in cyberspace, says Michael Saylor.
- Saylor also believes Bitcoin’s scarcity and global appeal will drive its value up indefinitely.
- Bitcoin is safer than physical assets, as it’s a global digital property that is not tied to one location.
- Bitcoin’s mobility and security make it resilient against political and economic instability.
In a recent interview, Michael Saylor, the executive chairman of MicroStrategy, made a case for Bitcoin investment by likening it to Manhattan real estate. So, he said, “The apex property of the human race is Bitcoin. Bitcoin is Manhattan in cyberspace.”
He also draws parallels between investing in Manhattan and investing in Bitcoin, “Was it too late to invest in Manhattan in 1680? No. Was it too late in 1776? No. Was it too late in 1865? No. Was it too late in 1914? No. 1945? No. 1976? No. 2000? No.”
Saylor explains that Manhattan has always been a desirable investment due to its limited land and central position in the North American trade network. So, this constant demand has driven up the value of Manhattan real estate over centuries.
Similarly, Saylor believes Bitcoin will continue to appreciate. Thus, he notes, “Scarce, desirable assets go up forever.” Bitcoin, like Manhattan, is limited and in high demand. He emphasizes, “Bitcoin is the center of the digital economy. It’s like the capital city, the Nexus point of the entire digital economy.”
Why Bitcoin Investment is Safer
Saylor argues that Bitcoin is a safer investment than Manhattan. He explains, “Manhattan competes with Tokyo, London, and Paris. Manhattan is just a physical city.” In contrast, Bitcoin is a global digital asset. “Bitcoin has appealed to everybody on Earth speaking every language,” he says.
Futhermore, Saylor also describes Bitcoin as a “city that’s 276 blocks high, 276 blocks wide, 276 blocks deep.” This refers to the maximum supply of Bitcoin, capped at 21 million. “When you’re buying one Bitcoin, you’re buying just one of those blocks. That’s how many there’s going to be for a hundred years, a thousand years.”
The Bernard Arnault Test
Saylor introduces the Bernard Arnault test to illustrate Bitcoin’s enduring value. So, he explains, “The Bernard Arnault test says I have a lot of money. What should I invest it in? I should probably buy something that someone richer than me, more cultured than me, smarter than me will want to buy from me in 10 years.”
He argues that Bitcoin passes this test. “Bitcoin is the most popular, most well-known financial asset in the world. It is an investment,” Saylor says. So, he contrasts it with the dollar, which he points out “is not going up in value measured in dollars.”
He also adds, “If you went to 10,000 rich families and you said, ‘How’d you get rich?’ Not by buying dollars. How’d you get rich? Not by buying gold. Now that you are rich, what are you going to buy? Dollars? No. Gold? No. What are you going to buy? A sports team? Maybe. Leonardo da Vinci paintings? Maybe. The Magnificent Seven stocks? Maybe. A Bitcoin digital property? Maybe. The one thing that’s for sure they’ll say is property.”
Bitcoin Investment vs. Traditional Assets
Saylor’s explanation of the fiat currency trap is based on his personal experiences as an investor. “In 2020, after the excessive money printing in response to the COVID-19 pandemic, my software and business intelligence firm, MicroStrategy, was sitting on $500 million in cash. But I knew the money would keep losing value if not immediately invested.” So, this realization prompted him to seek an asset that could preserve and grow in value despite fiat currency debasement.
More so, Saylor’s quest for a “truly scarce, immutable asset” led him to Bitcoin. Since MicroStrategy’s first $250 million investment in Bitcoin, the firm has acquired over 214,000 Bitcoin, with a purchase price of $7.53 billion. Saylor compares Bitcoin to other investments, stating, “Beachfront real estate is the closest conventional idea to a scarce, desirable asset that the politicians can’t make more of.” However, he points out the limitations of real estate, including taxes and government regulations, which do not apply to Bitcoin.
The Risks of Traditional Investments
Saylor points out that traditional investments have numerous risks. “The government can print more bonds. They will issue trillions of dollars of bonds. They can print more currency. So don’t buy that,” he says. “Corporations can manufacture more Hershey’s Bars and more Kellogg cereal. Netflix can stream more videos.”
He also argues that anything a company can create more of or anything an AI can generate is not a good investment. “You don’t want anything a robot can do. Don’t want anything an AI can create. Anything a manufacturer can create. You don’t want anything a politician can create.”
Additionally, Saylor highlights Bitcoin’s unique attributes: “What’s the thing that’s least likely to be taxed, confiscated, or seized from you? Bitcoin’s interesting beachfront property is interesting.”
However, he notes that even beachfront property has its limitations. “In Florida, the beachfront property comes with a 2% property tax. So, over 30 years or 20 years, the state’s just going to take it away from you.”
Bitcoin Investment Mobility and Security
According to Saylor, one of Bitcoin’s advantages is its mobility. “With Bitcoin, you can actually move your Bitcoin from Florida to Wyoming. And in the worst case, you could put it with a custodian in Singapore or Monaco or London,” he explains. So, this mobility makes Bitcoin less susceptible to property tax and other risks associated with physical assets.
Saylor also highlights Bitcoin’s security. Thus, he says, “If you own the best building in a country where there’s a coup d’état, they’re taking your building. Look at what happened to everybody who owned property in Cuba. Castro took it all.”
Conclusion
Michael Saylor explains why Bitcoin investment is better than traditional assets. So, he points to Bitcoin’s Scarcity, security, and global appeal. Saylor also believes Bitcoin will keep increasing in value, unlike other investments that can quickly lose value and have high associated risks.
So, for those seeking a long-term investment that can withstand economic instability and political risks, Bitcoin offers a unique and promising chance.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
