MicroStrategy co-founder Michael Saylor has heaped praises on Bitcoin and predicted its long-term outperformance over traditional assets like cash, stocks, and the S&P 500 index.
Speaking during the Latin American Bitcoin & Blockchain Conference Friday, Saylor began by challenging the widely accepted inflation narrative, asserting that the United States dollar has been losing 7% of its value annually for the past century. He argued that consumer inflation, often reported at around 2%, only reflects a fraction of the actual rate, neglecting higher inflation in producer prices and asset values. According to Saylor, the US dollar has depreciated significantly against assets like gold and Miami Beach real estate, losing 99.8% of its value over a century.
Saylor then identified Bitcoin as the “Apex Commodity,” surpassing traditional commodities like oil, gold, and silver. He argued that human innovation continually improves the production of commodities, making them less desirable for long-term investment. In contrast, Bitcoin’s absolute supply cap and digital nature position it as a superior alternative to physical commodities.
The MicroStrategy CEO further expanded Bitcoin’s role beyond being a commodity, dubbing it the “Apex Technology.” He highlighted Bitcoin’s attributes as digital real estate, praising it as a form of digital finance superior to traditional tech giants like Apple, Google, and Microsoft. He argued that Bitcoin’s fixed supply, lack of management, and immutability make it an ideal investment compared to traditional technology stocks.
Saylor further characterized Bitcoin as the “Apex ETF”, envisioning it as a global monetary network once a spot Bitcoin ETF is approved. In his analysis, Bitcoin would be positioned in direct competition with traditional financial benchmarks such as the S&P index, the SPDR S&P 500 ETF (SPY), and other monetary ETFs like GLD and the NASDAQ index.
Moreover, Saylor asserted that Bitcoin functions as a non-sovereign bearer asset, combining the value of a bond without the systemic inflation or counterparty risks associated with traditional bonds.
Backing his claims with performance data since August 2020, when MicroStrategy first invested in Bitcoin, Saylor demonstrated Bitcoin’s impressive 199% growth compared to the S&P 500 index’s 30% and gold’s 4%. He argued that adopting a Bitcoin strategy could fuel growth for families, companies, and institutions.
Saylor’s comments come barely a week after a filing revealed that MicroStrategy acquired a staggering $593.3 million worth of Bitcoin in November, making it the most substantial Bitcoin purchase in nearly three years. According to the Saylor tracker, a website that tracks the company’s BTC purchases, the current valuation of MicroStrategy’s entire Bitcoin holdings stands at an impressive $6.9 billion. The company’s Bitcoin portfolio has yielded a substantial profit of $1.6 Billion.
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