Saylor being a Bitcoin bull won’t exactly be news, but he did note a number of specific short- to medium-term catalysts.
First, there will soon be a significant drop in supply accompanied by an increase in demand. Bitcoin miners, Saylor said, have to sell Bitcoin to maintain operations, and he noted that these sales currently amount to about $1 billion per month. However, the halving – expected in April 2024 – means that miners will soon only have half of it available to sell.
“You’ll see $12 billion a year of natural sales convert into $6 billion a year of natural sales,” he said. At the same time, he noted, spot Bitcoin ETFs would lead to increased buying pressure.
Second, there will soon be new rules implementing fair value accounting for corporate Bitcoin holdings. “In the long term,” Saylor said, “this will open the door for companies to adopt Bitcoin as a treasury asset and create shareholder value with their balance sheets.”
Finally, Saylor addressed the current news cycle, including the fraud trial of former crypto wunderkind Sam Bankman-Fried. “The early crypto cowboys, the crypto tokens that are unregistered securities, the unreliable crypto custodians” are burdens on Bitcoin, he argued.
“For the industry to move to the next level,” Saylor said, “we must move to adult supervision. We need to rationalize away from the 100,000 crypto tokens… that people are manipulating and towards Bitcoin.”
“If the industry looks away from the shiny little tokens that have been distracting and destroying shareholder value, I think the industry moves to the next level and we can do 10x from here.”
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