As a researcher with a penchant for understanding the nuances of financial markets and their analogies, I find Michael Saylor’s comparison between Bitcoin (BTC) and New York City intriguing. His investment philosophy, which he likens to buying Manhattan over centuries, resonates with my own approach to long-term investments.
In a recent interview with CNBC, Michael Saylor, founder and chairman of MicroStrategy, drew an interesting parallel between Bitcoin (BTC) and New York City, referring to the market’s leading cryptocurrency as “cyber Manhattan.”
‘Every Day Is A Good Day To Buy Bitcoin’
Saylor articulated a persistently optimistic stance towards Bitcoin, suggesting, “We’ll consistently purchase at the peak; every day offers an excellent opportunity to buy Bitcoin.” Mcrostategy’s co-founder compared his investment strategy to buying property in Manhattan throughout recent centuries.
If given the chance 100, 200, or any year over the past 300 years, I would have consistently invested in Manhattan – the economic heart of the free world. Despite paying slightly more with each successive buyer, this investment has always proven to be a sound decision.
Saylor’s comments precede the expected addition of MicroStrategy to the Nasdaq-100 on December 23rd. This move will also classify MicroStrategy as a Bitcoin surrogate within the Invesco QQQ Trust ETF, which follows the Nasdaq-100 index’s performance.
Starting from the year 2020, MicroStrategy has been actively stockpiling Bitcoin by utilizing its financial resources to fund additional acquisitions via convertible notes. This strategy became more pronounced post the United States presidential election, as the company made successive weekly Bitcoin purchases for six consecutive weeks.
It was revealed on Monday that MicroStrategy had purchased an extra 15,350 Bitcoins, adding up to a grand total of 439,000 Bitcoins in their possession, with a staggering estimated value of around $46 billion.
On the other hand, Saylor refuted claims from critics who likened MicroStrategy’s Bitcoin purchasing strategy to a “Ponzi scheme.” To make his point clear, he drew an analogy with Manhattan real estate development.
Much like builders in Manhattan, whenever property values rise, they tend to take out more loans to construct even more properties. This is the reason behind the towering structures you see in New York City; it’s a practice that has been going on for around 350 years. I would describe this as a real estate economy at work.
Market Caution Grows
In the last day, Bitcoin has hit a record peak of $107,850 due to a 10% rise in its value and a significant 25% boost in trading activity. This strong showing has rekindled optimism and positive outlook among investors.
In a recent post on social media platform X (previously known as Twitter), crypto analyst Ali Martinez pointed out that approximately 62.6% of traders holding Bitcoin futures on the Binance exchange have taken a bearish stance, meaning they are betting on a decrease in the price of Bitcoin.
This pattern might lead to a rush to sell off bearish bets, possibly causing prices to increase. Yet, this behavior hints at a certain apprehension among traders, suggesting they expect Bitcoin may experience a decrease in value.
However, it’s still unclear if the previous resistance level at $101,000 will be accepted as a support level by optimistic investors. Should this level maintain its position, it might open up possibilities for additional price movements as we approach the end of the year.
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2024-12-17 13:11