Bitcoin (BTC) started to lose value and show a serious fluctuation in the past weeks after Tesla CEO Elon Musk announced that he was suspending BTC payments. Musk explained that the decision in question was taken due to the harmful effects of Bitcoin mining on the environment.
MicroStrategy CEO Michael Saylor, whose company has regularly invested in Bitcoin since last year, discussed topics such as Bitcoin price fluctuation, mining activities and BTC’s position against other cryptocurrencies during his recent interview with CNN. Saylor recently led the establishment of the Bitcoin Mining Council by mediating between Elon Musk and US Bitcoin miners.
Saylor, who said that Bitcoin has matured as an asset class, suggested that the mainstream media usually focuses on short-term price action and therefore they make a negative transmission. Saylor pointed out that both Bitcoin price and liquidity have increased by 700 percent in the past 15 months.
Saying that the fluctuation in Bitcoin price is accompanied by vitality, MicroStrategy CEO said that crypto money has performed 10 times better than stocks and 100 times better than gold in the past decade. Saylor summed up, “I prefer the volatility and the liveliness that comes with it, rather than a steady recession.”
Comparing Bitcoin and Amazon, Saylor stated that Amazon shares have also fluctuated in the past years, but this did not break Jeff Bezos’ faith in the company. Thinking that Bitcoin is in the same position, the CEO explained as follows:
“Bitcoin represents the trust in the digital currency network that will provide economic freedom to billions of people around the world. If the price we have to pay on this path is volatility, it is a pretty small price.”
CNN asked Saylor why he thought Bitcoin would be a success among all cryptocurrencies, noting that Yahoo was thought to be the winner in the dot-com bubble in the early 2000s, but ultimately winners were other companies like Amazon and Google.
Saylor argued that Amazon was the fastest network to reach a value of one trillion dollars, and it was fifty times the difference from its closest competitor, so it was already clear even then that it would not fail. The CEO said that Bitcoin is currently in a much more dominant position compared to Amazon and other companies that are the winners of the dot-com bubble.
Saylor believes that the proof-of-work structure that underlies Bitcoin mining is critical to the long-term success of cryptocurrencies:
“Bitcoin is the dominant crypto-asset network, and if you want a long-term asset that will be in our lives for a hundred years, you need to make it completely decentralized and permissionless (…) Proof-of-work structure; decentralized, secure and long-term integrated It’s the best structure to design anything.”
The Bitcoin Mining Council, established through Saylor, will work to promote the clean energy transition in mining operations.