Bitcoin is a Scarce Asset That Should be Owned – MicroStrategy CEO
3 min read
Summary:
- MicroStrategy CEO, Michael Saylor, has categorized Bitcoin as an asset and not a commodity
- He explains that commodities are abundant and should be traded
- Additionally, assets such as Bitcoin are scarce and should be owned
- His comments were as a result of Mr. Saylor pledging to convince the CEO of Hedeye, Keith McCullough, to reconsider his decision to sell all his Bitcoin in early October
The CEO of MicroStrategy has categorized Bitcoin (BTC) as an asset and not a commodity. According to Mr. Saylor, commodities such as grain, oil, beef, etc are abundant and should be traded. However, Bitcoin being an asset means that it should be owned and not traded. Furthermore, the scarcity of Bitcoin adds to its appeal as an ideal treasury reserve asset.
His comments were a message to the CEO of Hedgeye Risk Management, Keith McCullough, and can be found in the following tweet.
My message for @KeithMcCullough : #Bitcoin is an asset, not a commodity. Commodities are abundant and should be traded. Assets are scarce and should be owned. Pure monetary energy is the ideal treasury reserve asset, and for the first time in history, we can now own some. https://t.co/MG9dz5LFLF
— Michael Saylor (@michael_saylor) October 20, 2020
‘I’ve Sold All of My Bitcoin’ – Keith McCullough
Mr. McCullough made headlines back in early October after he notified the investing community of his decision to sell Bitcoin via the following Tweet.
I've sold all of my Bitcoin
— Keith McCullough (@KeithMcCullough) October 6, 2020
Two days after the above tweet, Mr. McCullough went on to explain that his decision to sell Bitcoin was based on ‘RoC Empirics’. This simply means his decision was made from ‘Return on Capital’ calculations. He also explained that he would not be buying Bitcoin unless his ‘dynamic rate-of-change model’ signals him to do so. An excerpt from his explanation can be found below.
On Bitcoin, the combination of:
A) A bearish @Hedgeye TRADE breakdown (what was $10,797 TRADE support is now resistance) and
B) Rising probability of #Quad4 in Q4Makes it an easy A/B Tested decision to sell some, then sell all. Other than Hedgeye Equity, my Real Estate, Wine, and Venture Capital investments, I am not a buy-and-HODLer. I am a Risk Manager of liquidity who avoids epic drawdowns.
Like Tech Stocks, the only Quad that has a high and rising probability of crashing #Bitcoin’s price = #Quad4…
…But, as a matter of risk management #process, I won’t buy either [Bitcoin or Gold}] back on some static “valuation” model. I’ll buy them when my dynamic rate-of-change model signals to do so in the right Quad.
It is with this background that the CEO of MicroStrategy, is attempting to convince Mr. McCullough to change his opinion of Bitcoin (BTC). As seen in the poster in the first tweet, Mr. Saylor and Mr. McCullough will be having a conversation on Bitcoin today, October 20th, at 10:30, am ET. The webcast to the event, and its recording once complete, can be found here.
