Michael Saylor, CEO of MicroStrategy, revealed what prompted his company to secure its fortune using bitcoin instead of other assets that might have seemed like more reasonable options like gold.

MicroStrategy is among the first traditional financial companies to invest in Bitcoin (BTC) and consider it a store of value, which led to an influx of institutional investment into Bitcoin after the end of last year.

Michael Saylor, CEO of MicroStrategy, admitted: talking In Blockchain Binance Week, it was reported that in February 2020, he was relatively ignorant of the potential of Bitcoin, and may have dismissed the cryptocurrency as a kind of pesky digital cryptocurrency.

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But his views and convictions changed, as Saylor asserted that he saw Bitcoin as more of a store of wealth than gold.

He stated the following:

When looking at which assets to go to to reduce the potential loss of about 15% of shareholder value on its cash balance annually, MicroStrategy found that Bitcoin provided the best returns out of a broad list of assets, such as:

Government debt, stocks, derivatives, real estate, and precious metals.

Saylor added:

Gold returns do not look as convincing as Bitcoin.

So we finally found and headed for cryptocurrency because in essence it helps create a digital world

Bitcoin is digital gold.

Saylor added:

If you are looking for a cashless derivative store of value in an inflationary environment, then it makes sense that you would settle for Bitcoin as digital gold.

Why the volatility of the crypto market does not bother MicroStrategy:

When asked if bitcoin’s volatility is a concern, Saylor indicated that MicroStrategy’s investment plan is to hold the cryptocurrency on a long-term basis.

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Therefore, short-term volatility was not a concern for MicroStrategy, because its goal was not to trade bitcoin daily, but to hold bitcoin for the long term.

He told Saylor in this regard:

We are doing a 10 year investment, and if you look at bitcoin over 10 years, it’s not volatile at all, it just goes up.

Saylor explained that in any case, for assets to gain value, they must be subject to some fluctuation.

However, never investing in bitcoin is more risky than holding a volatile asset.

Saylor added:

If we want to avoid volatility, we can keep the money.

But we will be 90% sure that we will lose 75% of our value over 10 years.

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This is the price of stability.

Volatility is the price you pay for value.

Currently, MicroStrategy holds a total of 70,470 bitcoins, which translates to more than $2.6 billion in current bitcoin value.

Bitcoin is the best store of value:

Many crypto bulls share Saylor’s sentiment about bitcoin as a perfect hedge asset.

As the potential of Bitcoin continues to grow and is being revealed daily, many have taken it upon themselves to educate others about its value.

Anthony Pompliano, well-known on the crypto arena, said:

Bitcoin has really revealed who is open minded.

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