10 Things For Bitcoin To Become A Stronger Asset

Michael Saylor talks about 10 things that have to happen over the next decade to make bitcoin a better and stronger asset.

10 Things For Bitcoin To Become A Stronger Asset 1

In a recent interview with Bloomberg, Michael Saylor, CEO of the pro-bitcoin software analytics firm MicroStrategy, discussed 10 steps he thinks will make bitcoin a more stronger asset.

In the interview, Saylor said, “There’s about 10 things that have to happen over the next decade to make it [bitcoin] a better asset, and we kind of know what those 10 things are.

The lack of a no wash-trading rule, which enables traders to harvest loss and gain in a way that is not possible with conventional stocks markets, is the first issue on the CEO’s list of problems that need to be solved.

Saylor then brought up the issues with the 520 unregistered and unregulated cryptocurrency exchanges that offer 20x leverage, frequently resulting in vulnerable investors suffering significant losses.

Second, by comparing bitcoin to badly run, unregistered securities, the 19,000 cryptocurrencies that are cross-collateralized and connected to it currently hold it back.

The problem also gets worse because “wildcat banks,” which enable gammified practices delivering unsustainable yield, like those that led to the collapse of the Terra ecosystem, glorify these securities.

Not least amongst which, Saylor noted lack of understanding and fear of the asset class, noting that media reports about the supposed death of bitcoin on numerous occasions continue to frighten many people.

The lack of a real stablecoin, which Saylor believes would be a significant benefit for the ecosystem if one is fully regulated and approved, has caused fear and uncertainty across the board, not just for bitcoin, he continued.

The CEO concluded his list by pointing out the lack of a spot exchange-traded fund (ETF), which would have allowed institutions to interact with bitcoin without actually touching it.

The lack of regulatory support and guidance that institutions currently face is the last of the three aspects that need to be improved in the bitcoin ecosystem. These drawbacks include a lack of insurance and guidance in getting involved in the sector.

Saylor spent a significant portion of the interview defending MicroStrategy’s bitcoin strategy through the most recent downturn before presenting his list of improvements that will usher bitcoin into its next bull-cycle.

“We did a lot of backtesting and I’ve gone back and looked at the numbers,” Saylor explained. “On August 10, 2020 when we announced our $250 million bitcoin buy, since then, bitcoin is up 72%.”

He continued by comparing it to some traditional assets throughout the same timespan, such as the NASDAQ (-2%), gold (-9%), S&P 500 (+9%) and single-family homes (+26%).

“The bottom line is that the bitcoin strategy is 10x better than any other alternative,” Saylor concluded. “So, no. I don’t regret it.”

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