Despite bitcoin’s violent sell off, Microstrategy CEO Michael Saylor is holding firm. The bitcoin bull said he’s in it for the long term and his strategy is to buy and hold the cryptocurrency.
“There’s no price target,” Saylor told Yahoo Finance Live. “I expect we’ll be buying bitcoin at the local top forever. And I expect bitcoin is going to go into the millions. So we’re very patient. We think it’s the future of money.”
Saylor said bitcoin has sold off with other risk assets like stocks as the Federal Reserve has moved to raise interest rates, and investors have sold off riskier assets or assets with valuations that had soared. That, Saylor said, is separate from the meltdown of stablecoin TerraUSD and its sister token Luna, which he thinks will accelerate efforts to regulate stablecoins and security tokens.
“That’ll be good for the industry,” he said. “Over time, I think as people get educated and as they get more comfortable, I think we’ll recover from this drawdown.”
On the back of the meltdown in Terra, Saylor said regulators are going to accelerate their regulation of stablecoins and crypto security tokens and that the winner will ultimately be bitcoin.
“Once people figure out why bitcoin is superior to everything else, then the institutions are going to come in with large sums of money, and we’re not going to have to struggle through this massive explanation of why we’re different than 19,000 other crypto tokens,” he said.
Saylor also thinks that since most cryptocurrencies aren’t registered securities, that’s preventing public companies and investors from investing in them and holding back the asset class as a whole.
Saylor on the future of payments
While Saylor believes bitcoin is the future of money, he thinks Lightning—a network applied to bitcoin that enables the cryptocurrency to scale up its ability to do transactions more efficiently— is the future of payments.
“If you’re going to do payments and transactions high speed, you’re going to need a base layer that’s ethically sound, economically sound, and technically sound,” he said. “That’s what Bitcoin is. But then billions and billions of transactions are going to go on a layer 2 like Lightning.”
Jennifer Schonberger covers cryptocurrencies and policy for Yahoo Finance. Follow her at @Jenniferisms.