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Bitcoin is the best inflation hedge but not so good for buying a cup of coffee, says MicroStrategy founder Michael Saylor. In order to properly evaluate Bitcoin, you need to perceive it as an asset, not a currency, he emphasizes.
Michael Saylor thinks BTC is the best asset, better than the U.S. dollar, but he doesn’t think it works to buy coffee. “You don’t want to pay for your coffee with your bitcoin, you want to pay for your coffee with a currency,” Saylor said in an interview with CoinDesk TV on Tuesday.
The main difference between the dollar and bitcoin is that bitcoin is the world reserve asset whereas the dollar is the world currency. Treating bitcoin as an asset rather than a currency also makes life easier in terms of regulation. “All of these regulations ... they're really regulations restraining your use of a digital asset as a currency rather than as a property,” Saylor said, adding that if you acknowledge that, it's easy to see that the future of the industry is “quite bright."
Apart from this, Saylor also raised the issue of inflation, stating that bitcoin would provide better inflation protection. “There’s going to be volatility, but it seems to me that now we have universal acknowledgment that the world needs an inflation hedge,” he said. "So if you have bitcoin, don’t sell it."
At the end of November, MicroStrategy announced that it had significantly increased its already large bitcoin holdings. According to the latest Form 8-K filed with the Securities and Exchange Commission, the company acquired an additional 7,002 BTC for $414.4 million in cash. Following this purchase, the company has significantly increased its bitcoin position and now owns 121,044 BTC. These bitcoin holdings were purchased for $3.57 billion at an average price of $29,534 per BTC.
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