- Bitcoin doesn’t need to be a medium of exchange to fulfil its role, according to Microstrategy CEO Michael Saylor
- Saylor compared Bitcoin to gold, stocks, and real estate which equally can’t be used to pay for everyday items
- Bitcoin’s use case has been shaped by global events as much as the technology
The CEO of Microstrategy, the company that has converted some $400 million of its assets into Bitcoin, has said that the cryptocurrency doesn’t need to operate as a medium of exchange in order to fulfil its potential. Michael Saylor, whose company hit the headlines last month when it bought ₿38,250 as a hedge to the dollar, said that the cryptocurrency compared with stocks, gold, and real estate, none of which can be used to buy everyday items either. His attitude reflects a gradual shift in Bitcoin’s use case, which has been shaped by global events as much as the technology itself.
Bitcoin Finding its Feet as Dollar Hedge
Saylor made the comments regarding Bitcoin’s use case on Twitter in reference to recent reports that the company was on the verge of dumping its Bitcoin, which he called “creative journalism”.
After referencing its increased security in recent years, Saylor then stated how it was not a bad thing that Bitcoin was not yet accepted by many retailers:
No one can buy a pizza with their stock, bonds, real estate, gold, or derivatives. No one cares. #Bitcoin does not need to be a medium of exchange.
— Michael Saylor (@michael_saylor) September 24, 2020
His comments come at a time when, more than ever, Bitcoin is being seen as a dollar hedge alongside the likes of gold and silver. Part of this shift in use case is down to Bitcoin’s design as a decentralized asset, a use case that has been accelerated in recent months following the massive money printing undergone by governments in response to the coronavirus pandemic.
Saylor Not Alone
Saylor is not the only individual in the business world who has shifted his opinion on the cryptocurrency recently – George Ball, the former Prudential CEO, hedge fund head Paul Tudor Jones, and Mad Money presenter Jim Cramer are among those who have publicly stated that Bitcoin now has a seat at the table alongside traditional fiat hedges.
Bitcoin critics have for years stated that the inability to spend it as readily as cash means it has no purpose other than as a speculative investment play. It may just be however that the fact it hasn’t been adopted as a means of exchange has left it free to take up the mantle as hedge against fiat currency, to which it is arguably better suited anyway.