Michael Saylor, the founder and CEO of MicroStrategy, a Nasdaq-listed business intelligence firm, has explained why he keeps believing in the future prospect of Bitcoin (BTC), the largest cryptocurrency by market capitalization.
In an interview on episode 128 of the PBD Podcast, Michael Saylor referred to Bitcoin as “The American Dream” and explained why the flagship crypto shouldn’t be called a commodity.
Saylor explained further that the uniqueness of Bitcoin lies in the fact that only 21,000,000 BTC can ever be produced, which makes the asset a “scarcity”. He said BTC is absolutely capped even if its price surges by a factor of a thousand or a million.
“The reason that Bitcoin is magical is because there’s only 21 million. I can create more real estate in New York City. I can create more cars. I can create more luxury watches… I can create more gold. I can create more shares of stock. I can create more bonds.
“I can create any commodity. They’re commodities by definition. Given enough money and time, I can create infinite of any of them. Bitcoin is a scarcity. Okay, name another scarcity in the world, right? And technically, it’s not clear there is another scarcity, right? Scarcity is something of which it is absolutely capped.
“If the price goes up by a factor of a thousand or a million, it is absolutely capped. That is not the case with gold, soybeans, silver, stocks, bonds, real estate, single-family homes, ships, planes, trains, nothing else.
“Everything else could be manufactured. And of course, if the price goes up, the incentive to manufacture more will go up, which is why, you know, buying a house isn’t necessarily going to be a great store of value in an inflating economy because you’re going to have incentives for someone else to dilute the value of your house.
“If you do buy a house, better off to buy a house on land than a condo on the 57th floor of a building. And if you do buy it on land, better off buying it on waterfront property. And if you buy waterfront property, better off buying it on the beach.
“And if you buy it on the beach, you’re better off to buy it in the most desirable location of affluent intelligent people for the next 30 years…. And you can do that for 10, 20, 30 years — that’s Palm Beach, that’s the Hamptons, right? You can figure that out. Now figure out for a hundred years.”