1 Reasons You Should Be Careful When Following Michael Saylor’s Bitcoin Strategy | Author: Tom Handy | The Capital | June 2021
in case You watched a recent video about Bitcoin this year, and you might meet Michael Saylor giving advice on Bitcoin and the cryptocurrency market. Michael Saylor is the founder of MicroStrategy and has invested heavily in Bitcoin since 2020.
Michael Sayler He is a latecomer in the cryptocurrency field, but he is making a huge impact as an investor.His company MicroStrategy has approximately 91,579 Bitcoin It is worth 3.45 billion US dollars at the time of writing.
In chronological order, these are MicroStrategy’s moves to buy Bitcoin since 2020.
2. September 15, 2020. Saylor Double Double Double $175 million Go to MicroStrategy’s balance sheet. The total purchase of MicroStrategy for this $425 million is 38,250 BTC.
3. On February 17, 2021, Saylor revealed that MicroStrategy is Sale of $900 million in debt Buy more bitcoins. The price of Bitcoin is $49,600.
4. On March 1, 2021, MicroStrategy will be held 90,859 Bitcoin It bought the company for approximately $2.2 billion.
5. June 2021. MicroStrategy is on sale 400 million US dollars in corporate bonds Buy more bitcoins.
“When Bitcoin Later this month, it hit an all-time high of $61,683, and this investment is worth a jaw-dropping $5.6 billion. MicroStrategy’s book profit was US$3.4 billion. “
Michael Saylor is one of the cryptocurrency investors who have recently encouraged other companies to invest. Saylor even encouraged Elon Musk to invest in the cryptocurrency field.
“Michael Saylor’s decision The funds invested in MicroStrategy paved the way for other business leaders to explore adding Bitcoin to their balance sheets,” said Diogo Mónica, co-founder and president of cryptocurrency custodian Anchorage.
In multiple video On YouTube, Michael Saylor mentioned that the company should borrow to buy Bitcoin. Companies are usually in a different category from people, and they can usually get loans to fund this investment.
If one person does this, it can easily backfire.
The company has a longer time to make this investment. Many people live on salary and have little savings. If Bitcoin crashes like it did after 2017, many people will see their investment disappear.
The same thing happens with MicroStrategy.
Edward Moya, a senior market analyst at Oanda Corp, a currency trading company in New York City, is also a Bitcoin believer. He expressed his views on MicroStrategy.
“That would really damage [MicroStrategy]. No matter how many’buy’ ratings they have, they will be converted to’sell’,” Moya said. “It is difficult for the company to recover from it. “
The Bitcoin market is always likely to collapse. It is dangerous for people to follow Thaler’s advice. Some people have no plans for investment.You can look at the high profile movement with Movie star Who made millions and eventually went bankrupt.
If a millionaire goes bankrupt due to improper investment or trading, anyone can lose money, rich or poor.
Although Michael Saylor advises others to invest in Bitcoin and borrow to buy Bitcoin, his information does not apply to everyone. Saylor is in a better position to use this digital currency for large-scale investments and loans.
In 2017, when Bitcoin was approaching $20,000, some people made risky investments. Some people take loans, Transactions in and out of Bitcoin, And other similar events.
Before investing in Bitcoin or any cryptocurrency, you need an exit plan.
Ask yourself these questions:
- When are you going to sell your cryptocurrency?
- If cryptocurrency generates 10x or 100x returns, what do you plan to do?
- Does your exchange provide a summary of your transactions?
- When you cash out, will you have money to pay taxes?
These questions are important for you to have answers. If you don’t have an answer, you may face IRS penalties, lose your investment, or spend all your earnings.
You need to make a plan for your income, not an investment. You don’t want to be an investor who has made a fortune but lost money overnight.
The important thing is not to be too greedy and make an exit plan for your cryptocurrency.