In an interview with CNBC, former MicroStrategy CEO Michael Saylor pointed to two forces driving the widespread adoption of Bitcoin. The first is concerns about inflation. People are losing faith in fiat currencies due to macroeconomic concerns about inflation.
This means that they are starting to realize that everything that is denominated in cash flow is a currency derivative, and Bitcoinis not denominated in cash flow.
The second force is the recent banking crises, including the failures of Silvergate Bank, Signature Bank, Silicon Valley Bank and most recently First Republic Bank, which have eroded investor confidence in the banking system.
Saylor reiterated MicroStrategy’s confidence in Bitcoin’s potential. He stated that the business intelligence and software firm will continue to accumulate more digital assets, even though its portfolio of approximately 140,000 BTC has suffered significant market capitalization losses.
Saylor’s belief in Bitcoin is rooted in the fact that it is a decentralized and deflationary asset with an absolute scarcity of 21 million coins. He believes that Bitcoin is a tool for hedging inflation and preserving value, and will become the world’s reserve currency in the future.
As bitcoin gains acceptance, it is likely to face increasing regulatory scrutiny.
However, Saylor believes that cryptocurrency will ultimately prevail because it is based on sound economic principles and is a decentralized and transparent system free from manipulation by central authorities.