As a reminder, Saylor had previously stepped down as MicroStrategy's CEO, but still holds a key position in the company's management team. It still ranks first among all publicly traded companies in terms of cryptocurrencies in BTC. That said, MicroStrategy has a huge unrealised loss on its Bitcoin investments, although Michael isn't worried about that at all - he's willing to go all the way in his dedication to the cryptocurrency.

We’ve clarified the latest data: today, amid the collapse of Bitcoin and the cryptocurrency market in general, MicroStrategy’s unrealized loss on its own BTC is $1.57 billion, down 39 percent from its total investment in the coin.

MicroStrategy’s Bitcoin position

Despite this, the company’s management plans to replenish the cryptocurrency’s holdings. As it became known in the first half of the month, MicroStrategy is selling its own shares in the equivalent of $500 million for the sake of buying BTC, among other things. But even if the giant spends the full amount to buy the cryptocurrency, it won’t be the largest purchase of the coin. Still, MicroStrategy bought 19,452 bitcoins worth $1.026 billion in February 2021.

How is Bitcoin better than other cryptocurrencies?

During his speech at the Australia Crypto Convention event, Sailor said Bitcoin is backed by $40 billion worth of mining equipment and electricity. He also noted that traditional assets like gold in large quantities and land are constrained by geographical boundaries. Here is his quote.

If you have property in Africa, no one from London will want to rent it. But if you have a billion dollars worth of Bitcoin, you can lend it or “rent it out” to anyone in the world.


The comparison is very strange - Bitcoin and real estate are two fundamentally different asset types. Commercial real estate in a good location can be rented out at a higher profitability than, for example, borrowing in crypto for the same amount. The value of real estate is also not subject to as much volatility as the price of BTC can be. In addition, there are no decentralised loan platforms based on the Bitcoin network, as there are with other networks popular for DeFi products like Etherium, Solana or Avalanche.

And in general, such an argument is suited primarily to fiat money like dollars and euros, and Saylor clearly didn't want to voice his argument in favour of conventional currencies.


Cryptocurrency rates

According to Cointelegraph sources, Saylor also highlighted the high operating costs and taxes associated with owning and inheriting physical property in the long term. Geopolitical tensions around the world also determine the type of assets that are allowed to be transported across jurisdictions around the world.

Bitcoin is property that you can buy in small pieces and carry with you wherever you go. You can pass it on to your children’s children. And 250 years from now, your family will probably still own that property.


Note that this argument is indeed valid. After all, crypto-assets are inside the blockchain, and the owner of the address requires a certain combination in the form of a private key to access the coins. However, this can be said for all cryptocurrencies, whether it is Etherium, Solana or Ravencoin. Therefore, this argument does not look particularly convincing either.


Explain Bitcoin’s superiority to those who bought it at $65k

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According to Sailor, supposedly only royalty like King Charles III have the right to pass on their fortune by inheritance without worrying about it being taxed. So Michael made it clear that it is much easier to transfer crypto to loved ones, because in this case it will not be taxed, as the change of coin ownership is essentially not shown anywhere. However, taking tax advice from Michael Saylor is clearly not worth it: he has previously been sued precisely because of possible tax non-payment.

Finally, another of Saylor’s arguments is that the Bitcoin network has not been hacked in over thirty years and is now “the most secure network in the world”.

Michael is partly right on this point – the Bitcoin network has operated without disruption for more than 99 per cent of its existence. However, in 2010 and 2013, the blockchain did go offline: for 8 and 6 hours respectively. In the first case, which occurred on 15 August 2010 and is known as CVE-2010-5139, on a block numbered 74638 an attacker conducted a transaction and created 184,467,440,737.09551616 BTC. At the same time, the maximum number of bitcoins in circulation is limited to 21 million units.

Time periods when the Bitcoin network was offline

All in all, the MicroStrategy head's recent statements about crypto are more and more akin to divorced from reality high-profile statements to draw attention to themselves and Bitcoin. We don't think they will change much in the long term, and the future bullrun of the cryptocurrency market will take place without such remarks. At the same time, the industry traditionally needs two things for a new growth phase: to run out of people who want to sell and lots of people who want to buy.

What do you think about this? Share your opinion in our Millionaire Crypto Chat. We’ll talk about other topics from the world of decentralization there as well.