Prominent Bitcoin (BTC) advocate and MicroStrategy Chairman Michael Saylor on Saturday, March 23 compared Bitcoin's performance to traditional assets such as the S&P 500, Nasdaq, gold, silver, and bonds. Shared the chart.
Saylor saw this as an opportunity to assert Bitcoin's dominance in the investment world.
According to the chart, Bitcoin grew 432% during this time, compared to 56% for the S&P 500 and 50% for the Nasdaq.
Conversely, silver and bonds performed disastrously, losing 13% and 19% of their value respectively, while gold registered a gain of just 7%.
“Volatility is vitality”
Bitcoin rose meteorically to an all-time high of $73,797 on March 14, but the digital currency has since experienced a nearly 12% decline, sparking debate within the crypto community.
Saylor, known for his bullish stance on Bitcoin, shared his thoughts on market volatility on social media.
In his opinion, volatility is the same as “vitality.” Thaler argues that price fluctuations are integral to market dynamics, portraying them as a natural phenomenon rather than a cause for alarm.
Under Saylor's leadership, MicroStrategy has ramped up its Bitcoin efforts and significantly increased its holdings.
In a recent press release, the company revealed the acquisition of over 9,000 BTC between March 11th and 18th, financed through a combination of convertible debt issuance and the company's cash reserves.
This latest acquisition follows the company's successful private offering, which raised $603.75 million.
With this inflow of funds, MicroStrategy takes the opportunity to strengthen its Bitcoin financial reserves, currently totaling approximately 214,246 BTC and an average price per Bitcoin of $35,160.
Peter Schiff retorts
But not everyone shares Saylor's enthusiasm for Bitcoin. Peter Schiff, an economist known for his skepticism towards cryptocurrencies, expressed concern about Thaler's approach to investing in Bitcoin.
Following Saylor's announcement of MicroStrategy's latest BTC purchases, Schiff warned of the high-risk nature of aggressive Bitcoin accumulation, citing the volatile nature of digital currencies as a potential pitfall.
Despite Saylor's aggressive leveraged purchases, Schiff noted that Bitcoin remains down 15% from its peak at the time.
He warned of further market declines, suggesting that Mr. Thaler appears to have finished his buying spree and that the market could fall significantly.
Schiff predicted MicroStrategy's potential losses, saying the company could incur a total loss of $3.25 billion if Bitcoin plummets to $20,000, and the coin's price drops to $10,000. He said that could increase to $5.5 billion.
