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Bitcoin can be viewed as a digital property within the most secure network in the world.
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As Bitcoin outperforms traditional store of value, $950T in assets could shift.
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Bitcoin adoption mirrors that of major economic hubs such as New York City.
Michael Saylor, Executive chairman of Strategy, recently addressed the question of whether Bitcoin still has long-term value.
He compared the growth of cryptocurrency to major financial centers like New York City using historical and economic analogies. He also drew parallels with how smart capital is concentrated around dominant networks. His argument centers around Bitcoin’s evolving role as the central economic infrastructure in cyberspace.
Saylor: Bitcoin mimics historical financial centers as Cyberspace’s economic hub
Saylor explained how throughout history, empires were centered around specific cities: Carthage (or Rome), Venice (or London), New York and London. These cities served as the hubs of financial and commercial activities. He claimed that Bitcoin has a similar place in cyberspace. Saylor claims that Bitcoin is the primary network for digital applications, money transfers, and global jurisdictions. This includes Singapore, Paris, China, and other countries.
He stressed that the value of Bitcoin is not in its price but in the strength and stability of the network. Bitcoin, with its fixed supply of 21,000,000 coins and structure supported by over 400 exahashes in computational power is now considered to be the most secure and resilient network.
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Saylor: Capital is moving from traditional assets to Bitcoin
Saylor noted that global assets such as real estate, bonds and equities carry a high monetary premium. He argued that a large portion of this capital was stored in inefficient assets which store value.
Gold, for example, has underperformed Bitcoin over the last two years. According to his view, investors may be more inclined to adopt Bitcoin if they realize that traditional assets are underperforming.
Citing historical trends he noted that investment in New York property would have been valuable a century after its economic rise. He suggested that Bitcoin is still a good long-term investment, even for those who are new to the market.
Altcoins are compared to penny stocks; Bitcoin is a premium ‘digital real estate’
Saylor compared Bitcoin with physical real estate. He argued that, just as investors prefer to invest in premium properties in major cities, Bitcoin represents the digital real estate of the most established and secured part of cyberspace.
RelatedA heated crypto debate is underway: Will Bitcoin remain the king or will altcoins win out?
In this context he compared most speculative Altcoins with penny stocks. They may be appealing for their low price, but in his opinion, they lack long-term value as well as fundamental network integrity compared to Bitcoin.
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