MicroStrategy is a leading company in the field of business intelligence. It recently made a significant investment, exceeding $5 billion in Bitcoin. Its executive chairman of the board, Michael Saylor, has conveyed his perspective on Bitcoin. He stated that BTC is an optimal strategy for upholding and securing wealth amidst market volatility and political uncertainties.
During a conversation with Stephen Gardner, a Safe Money Specialist in the US, Saylor discussed the intricate workings of monetary and asset inflation. They debated how inflation impacts individuals’ and institutions’ purchasing power and wealth creation.
Saylor, an expert in economics, provided a clear definition of inflation. He classified inflation into two types, i.e., Consumer and asset. Consumer inflation evaluates the rising prices of products with a continuous decline in quality. In comparison, asset inflation measures the creation and accumulation of wealth. According to him, asset inflation attains or maintains financial prosperity.
He observed that in the United States, asset inflation has averaged around 7-8% over the 100 years. But, consumer inflation has stayed at about 2%. The COVID-19 crisis and the increased money supply in vulnerable economies have significantly increased asset inflation.
This surge has resulted in scarce and resellable assets, which experienced an increase prices than 2%. Thus, It will cause fiat currencies to depreciate rapidly.
Saylor Talked About Inflation Dynamics
Saylor explored the inflation dynamics to compare the rapid devaluation of fiat currencies. He presented a compelling argument about the risks associated with traditional currency systems. He illustrated that the value of the US dollar has plummeted by 99% over the past century. This revelation highlights the importance of considering alternative options for wealth storage.
He emphasizes that this issue is particularly alarming for countries with unstable governments. People may find themselves stripped of their wealth due to policy changes or confiscations. In addition, Saylor believes Bitcoin is designed to mitigate these risks by leveraging its inherent characteristics.
Bitcoin represents a groundbreaking technology that provides many advantages. It is a monetary network devoid of potential leaks or inflationary pressures. Furthermore, he asserts that BTC can preserve economic energy and it does not erode over time.
Saylor claims that Bitcoin offers the apex means of safeguarding and expanding wealth in an uncertain world. In his perspective, it transcends being a simple investment or asset class. It is a conviction that enables individuals and institutions to shape their futures.
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“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”
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