Bear market for the first time? It is also the first bitcoin (BTC) bear market for one of the world’s biggest bitcoin bulls, Michael Saylor.
Saylor, the executive chairman of one of the world’s largest pro-Bitcoin companies, took a moment from his busy schedule at the Los Angeles Pacific Bitcoin Conference to speak with Cointelegraph. Critically, Saylor told Cointelegraph that when it comes to bitcoin, “you have to take a longer time frame perspective.”
“If you are buying [Bitcoin] And you have a time horizon of less than four years, you’re just speculating in this. And once you get a time horizon greater than four years, the obvious thing to do is dollar-cost averaging.
Dollar-cost averaging is one way to reduce an investment’s risk of volatility. Saylor continued, “You buy assets that you want to hold for a decade or more, which is a long-term store of value.”
At 130,000 BTC, MicroStrategy owns 0.62% of the total bitcoin supply, as total bitcoin mining is limited to 21 million. MicroStrategy’s entry price is roughly $30,639 per BTC, meaning the technology conglomerate’s total investment is largely underwater – should they sell for dollars.
However, Saylor is unenthusiastic about — on paper — the billion-dollar loss, saying, “Don’t get caught and watch the price day-by-day, week-by-week.”
The billionaire compares the value of bitcoin to the value of a house. He joked that “if you bought a house and every time you go to a party, you get drunk, and then at 11 p.m. or midnight you go upstairs and say, ‘ How much will you pay for my house? I want to sell my whole house to you right now.’ One may say, “Well, I’m really in no mood to buy a house. I’ll give you half of what you paid, and then you go home sad, and say, ‘All my money is lost.’ ‘”
Related: Bitcoin May Need $1B More On-Chain Losses Before New BTC Price Lows
Avoid that worry, he advised, and if you really need the money in the next 12 months, it’s not investable capital; Instead, Saylor explained, “It’s working capital.”
“A logical model is that if you live in Argentina, you hold pesos for a month or two, you hold dollars for a year or two. You hold bitcoin for a decade or two. And when you think about it in those frequencies and time frames, it all starts to make sense.
Lastly, as suggested by Saylor and Binance CEO Changpeng Zhao, keep your bitcoin with you. In light of yet another crypto exchange disappearing with customers’ funds, taking bitcoin into custody is the only way to ensure the asset cannot be confiscated.