The CEO of MicroStrategy, Michael Saylor, recently addressed online chatter about how the company would handle its $425 million position in Bitcoin. Many have speculated that the company had entered the Bitcoin market on a speculative basis, and will cash out when it makes a large return on its Bitcoin when measured in fiat terms.
Saylor refuted this view, and told the public,
“I see these guys on crypto Twitter. And they’re like, ‘Ya, Saylor’s going to buy it and he’s going to dump it. He’s going to buy it and then buy another company with it. He’s going to buy it until he gets this profit and do whatever.’
There’s a lot of traders in the market. They don’t understand the mindset of long. I’m buying it for the dude that’s going to work for the dude that’s going to get hired by the guy who takes over my job in 100 years. I’m not selling it. When it goes up by a factor of 100, I might be borrowing a little to go buy something that I want, but what am I going to buy with it that’s better than what I’m buying?”
Why it matters: As Saylor points out, there are many people in the crypto space that simply don't have the mindset of a professional investor. As more institutions enter the market, the trading dynamics of the major token markets are likely to change drastically, and we are also probably going to see a rise in token-settled options contracts. Short term traders may be disappointed by the lack of volatility in major tokens, but this is part of what happens when a market gains depth, and larger investors begin to roll-out long-term acquisition strategies. While there will always be price swings in any market, the days of seeing Bitcoin prices fall by 80% from its peak are likely behind us.