MicroStrategy CEO Michael Saylor, known for his consistent support of Bitcoin as the unique investment opportunity for corporations, asserts that he observes the growing adoption of the major cryptocurrency among institutional investors.
In particular, macro and hedge funds have demonstrated a more positive attitude towards Bitcoin as they recognize its strategic benefits compared with other assets. Bitcoin’s scarcity and high effectiveness in serving as a store of value indicate considerable potential for its long-term appreciation.
Moreover, the current macro-financial situation in different parts of the world also indicates serious problems present in the traditional banking and monetary system, facilitating the reorientation of Bitcoin among private individuals and corporate firms. The currency volatility in Africa, South America, and Turkey constitute the major drivers of the new wave of Bitcoin adoption in developing countries.
According to Saylor, the empirical volatility of the S&P Index, and high-tech stocks contribute to the growing institutional attention paid to Bitcoin that, while being highly volatile, may offer much greater long-term returns. The existing combination of potential monetary gains and risks incurred indicates considerable advantages of investing in Bitcoin and other cryptocurrencies.
Saylor expects the emerging interest in crypto assets to continue increasing within the following years among corporate leaders. The major reason is the growing awareness of the major characteristics of crypto-assets and their potential benefits for investors and other stakeholders.
The proper understanding of the crypto market rendition may also contribute to developing more effective approaches to controlling the risks incurred by companies with the possibility of reliably predicting the major price movements and returns on their investments in the long run.
Despite the high volatility of Bitcoin and other cryptocurrencies, their sustainable growth, in the long run, can make them especially appealing to long-term and strategic investors. Other things being equal, the higher involvement of institutional investors in the crypto industry relieves the volatility of the market, allowing Bitcoin to avoid the rapid price declines during recessions.
Moreover, crypto-assets may become better integrated with traditional finance and economic services, thus positively affecting the demand for them. MicroStrategy bought an additional 660 BTC on Tuesday, increasing its total holdings to more than 125,000 BTC. Saylor affirms the firm will be keeping up with its BTC accumulation in defiance of price declines.