Buffett would own all Bitcoin in zero-volatility world, says Michael Saylor

Michael Saylor, an American entrepreneur best known as the co-founder and Executive Chairman of MicroStrategy Inc.—a business-intelligence software company that also holds one of the world’s largest corporate Bitcoin reserves—has reiterated his conviction in Bitcoin even as the flagship cryptocurrency reels from a sharp correction.

 

Calling volatility “vitality,” Saylor argued that Bitcoin’s sharp price swings are essential to its long-term performance and the opportunity it creates for investors. 

Bitcoin has dropped over 31 per cent from its all-time high of $126,198, hit on October 7 this year. At last check, the cryptocurrency was trading around $86,881, up about 1 per cent, with a robust 24-hour trading volume of $63.85 billion on CoinMarketCap. Despite the fall, Bitcoin remains the world’s largest cryptocurrency by market capitalisation, though its value has slipped below the $2-trillion mark to $1.73 trillion.

 

In an interview with CoinDCX, Saylor remained unabashedly optimistic. “Volatility is vitality. And so if Bitcoin wasn't volatile, it probably wouldn't be high performance. And then our value added wouldn't be that great,” he said. The absence of volatility, he added, would leave no room for dedicated crypto analysts or niche financial commentators. 

 

“If you knew Bitcoin was going to go up 2 per cent a month forever with no volatility, neither you nor I would be in business because all the conventional finance investors, all the conventional journalists, they would dominate the market.”

 

Taking the point further, Saylor remarked that in a world where Bitcoin offered steady, predictable returns, “Warren Buffett would own all of it and there wouldn't be an opportunity for us.” In his view, what many perceive as Bitcoin’s flaw is, in fact, the very feature that sustains the ecosystem. “Volatility is Satoshi's gift to the faithful,” he said, referring to the pseudonymous Bitcoin creator Satoshi Nakamoto, who published the foundational paper Bitcoin: A Peer-to-Peer Electronic Cash System in 2008. 

 

According to Saylor, Satoshi effectively gave investors, analysts, journalists, and operators a chance to distinguish themselves in a competitive field. “If the volatility goes away, no one cares about your opinion on any of this,” he added. 

 

Saylor also emphasised the need for patience in Bitcoin investing. “If you're going to hold the asset, you need a four-year time horizon as minimum. A 10-year time horizon is really the right time frame,” he said. Investors unwilling to commit for at least four years, he suggested, should instead hold digital credit instruments. Equity investors—including in his own company—should adopt the same four- to ten-year view. “Four is the short term, 10 years is the long term,” he said.