“Don’t Do That”: MicroStrategy’s Saylor Issues Crucial Warning
During a recent appearance on the “Onramp Media” investment podcast, MicroStrategy CEO Michael Saylor warned Bitcoiners against leveraged trading.
“When you’re trading 10x leverage…Bitcoin trades down a few thousand dollars, you get forced liquidated while you’re sleeping and you lose everything. That’s stupid. Don’t do that,” he said.
At the same time, the billionaire has pitched the company’s debt-for-Bitcoin strategy:
“If you can create a company that raises equity or debt to buy Bitcoin, that’s intelligent. If you can borrow money at 4%, that’s even more intelligent,” he said.
Those who have capital that they could hold for more than four years should just buy Bitcoin and “forget about it,” according to Saylor. The same applies to loans that one would not be expected to pay back within four years. However, betting on the cryptocurrency with short-term loans would not be considered safe, according to the MicroStrategy co-founder.
“Nothing stops this train”
The former MicroStrategy CEO has also stated that there is no second-best idea since there is Bitcoin.
If you humble yourself before Satoshi and you recognize the brilliance of digital capital and you recognize the fact that this is inevitably going to go from a trillion to $10 trillion, to $20 trillion, to $40 trillion, to $80 trillion to $160 trillion…Nothing stops this train,” he noted.
He views Bitcoin as a “universal merger partner” that could potentially revitalize plenty of “zombie companies” that are sitting at the bottom of Russell 2000.
