Michael Saylor: Bitcoin has no existential threats and will dominate 21st century

As Bitcoin has grown in popularity and institutional adoption has increased at an unprecedented pace, cryptocurrency skeptics cite the potential of government intervention to ban its use as a currency as a reason for not investing.

Michael Saylor, CEO of MicroStrategy, said that even if the world’s largest cryptocurrency were regulated or even banned the use of Bitcoin as a means of payment, it would not face threats to its primary use case, which is a store of value, and so on, an existential threat should be considered.

“I think Bitcoin will be the emerging strong money store for valuables in the 21st century,” Saylor told Michelle Makori, editor-in-chief of Kitco News. “There are 8 billion people who need strong money or monetary value. If they want to lead a decent life, that asset has to be digital. ”

In fact, the word “cryptocurrency” itself is a contradiction in terms, as Bitcoin and other cryptos should really be viewed as a “crypto asset,” said Saylor.

“Money can be broken down into a currency component and an asset component. And these are not real cryptocurrencies, but crypto assets. And bitcoin is a crypto asset, ”he said. “And I think if you look at comments, probably comments from Jerome Powell, Christina Legarde, Deputy Governor of the Central Bank of China, Gary Gensler, they have all commented that this is a digital asset. It’s not a digital currency. ”

The difference between a store of value and a currency lies in the use cases of the asset. For Bitcoin, investors mainly use it to speculate in wealth and store it, while only a fraction of it is used as currency, Saylor said. With that in mind, governments are unlikely to see this as a threat to fiat currencies.

“It is very important to understand that the future of the world includes 8 billion people with mobile wallets, a currency tier, and a wealth tier. The currency layer will be the dollar and the euro or the Chinese yuan. And the asset layer will be bitcoin, ”he said.

The demarcation between the use of Bitcoin as a store of value and its role as a currency and thus the threat to governments can be highlighted in Turkey’s recent decision to ban Bitcoin as a means of payment.

Saylor noted that while Turkey mandated the use of Bitcoin as a currency, the government did not restrict its use as an investment.

“In the example of Turkey, they didn’t want people to use it as a currency. This is no different from what the IRS said in the US in 2014 when they actually taxed it on wire transfer. You also effectively said that it cannot be used as currency. So saying that we don’t want something to be used as currency because it threatens our currency is not the same as depriving people of an asset. And even the Turkish central bank has not withheld or restricted ownership of the property from Turkish citizens, ”he said.

What governments may fear later is blockchain applications that enable the transfer of large amounts of capital such as stable coins, Saylor said.

“You will be concerned about stable coins, like the ability to move billions of dollars on a crypto rail, or the ability to move billions of dollars from us on a crypto rail. That will pique the interest of the banks, because currency is the origin of the bankers and the government. And they will worry about controlling their currency, ”he said.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided. Neither Kitco Metals Inc. nor the author can guarantee this accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no liability for any loss and / or damage that might arise from the use of this publication.

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