American Entrepreneur and Business Executive Michael J. Saylor has long been a supporter of Bitcoin and once again explains how Bitcoin is and should be much preferred by individuals as an alternative to other assets. Michael Saylor, who is the executive chairman and co-founder at MicroStrategy has always been an advocate of Bitcoin.
His reasons for favoring Bitcoins over other forms of assets include:
- While all monetary and alternative assets tend to lose value with time, Bitcoin is immune of that
- Digital assets like Bitcoins have much more portability than any other form of assets.
What are Bitcoins
Bitcoins are a form of cryptocurrency, essentially digital fiat currency. That can be use as a mode of payment or transfer. They are decentralized in nature, meaning that unlike ordinary fiat money. They are not back by any Central Government or Central Bank. They are not even back by corporations unlike stocks and shares.
However, because they are decentralize, they are not restrict by any legal or geographical boundaries, opening them up to be purchase by anyone from anywhere in the world. This facilitates people to be able to purchase and invest in Bitcoin more freely.
How are Bitcoins better than any other form of assets
All currencies and other physical assets lose their value with the passage of time. For currencies of any nation, even though they are back by Central Banks. The value keeps dropping with the passage of years. This is because in an economy, where inflation is and will be the current trend. The value of money will invariably drop after 10-12 years.
For developed countries, the demand and the subsequent increase in the price of goods. Always be going up and thus the value of currency will continue to drop. For undeveloped or developing countries with weak economies, the currencies are weak. So, an investment of $1000, whether in cash or in stocks and bonds. Only lose its value with the passage of time.
It is the same with any investment made in property or automobiles. With the passage of time, a house or a car will go down in its monetary value because of usage. Availability of better commodities at lesser price, accidents and many other such reasons. Nothing can be done to prevent that.
Bitcoins are thus a much better place to invest in. Indeed, there is a risk involve with investment, but so it is with any other form of investment. Bitcoins are in fact scarce in number and so, more people are incline to invest in them, making the rate go higher which is equivalent to better profit.
Along with being the most profitable place to invest in, Bitcoin also offers accessibility and portability to people. For most citizens of Third World countries. It is not possible to walk into an American bank located anywhere geographically near to them. Bitcoin allows its users the ability to access it from anywhere and everywhere. Thus, bitcoin users can invest as well as carry them with themselves most easily.
All these reasons, as explained by Michael Saylor, make Bitcoin most favorable for people to take the risk of investment in. It is, thus, that Bitcoins dominate over all other alternative forms of assets that a person can invest in.