MicroStrategy CEO Michael Saylor insists two paradigm shifts ensure companies now have no choice but to buy Bitcoin.
Saylor puts his reasoning down to the new astronomical rate of monetary inflation, and Bitcoin becoming the first trillion-dollar truly global monetary network.
The MicroStrategy CEO explained Bitcoin now has the enviable position of being able to absorb much of the corporate balance sheets who now have to look outside of the standard cash or corporate bonds.
The Rate Of Monetary Inflation Will Drive Corporates To Bitcoin
Historically, corporate balance sheets consisted of cash and bonds, treasury bills etcetera, and as long as they were making a positive yield, usually above 6%, companies weren’t losing out.
However, according to Michael Saylor the monetary inflation is as high as 15-20%, so 6% return means companies are negative yielding between 9-14%.
Saylor says, ‘The amount of money being pumped into the economy tripled that has broken a bunch of conventional models,’ and explained we’d never had ‘a cost of capital that is so extreme.’ Read More