Here's Why Michael Saylor Says FTX Collapse And Other Crypto Scandals Will Benefit Bitcoin

Zinger Key Points
  • Michael Saylor said Bitcoin's strength was underscored by the failures of other projects
  • MircoStrategy was holding around 132,500 BTC as of December 2022.

Last week, MicroStrategy Inc MSTR announced its fourth quarter result. Co-founder and Chairman Michael Saylor discussed projects and enterprises in the crypto space during its earnings call. 

Saylor said many crypto projects fell apart in the aftermath of macroeconomic challenges and crypto scandals last year, including the FTX FTT/USD implosion.

"If you look at the microeconomic situation in the past 12 months, most of the crypto enterprises, the crypto assets, and the crypto use cases have melted down in that period. Of course, we know the stories of the bankruptcies of BlockFi and Celsius and FTX, and Genesis and Voyager and Alameda," Saylor said. 

"We also know about the meltdowns of all the crypto tokens, the Terra LUNA/USD token, the FTT token, etc. We believe these were all very weak use cases and fragile structures. And it was a matter of time before they melted down," he added. 

According to Saylor, Bitcoin's BTC/USD strength as a decentralized digital commodity was underscored by the failures of other projects that did not share those same qualities.

Also Read: If Charlie Munger Spent '100 Hours Studying Problems' Outside The US, He Would Be More Bullish On Bitcoin Than I Am Says Michael Saylor

"The meltdown has created short-term negative headwinds for Bitcoin because Bitcoin is cross-collateralized with all these other cryptos. But in the long term, the rationalization of the crypto market will be beneficial for Bitcoin. It has educated an entire generation of investors on the benefits of Bitcoin as a decentralized digital commodity and the benefits of not having counterparty risk," he said. 

Saylor is known as one of the most prominent corporate backers of Bitcoin, with MicroStrategy holding around 132,500 BTC as of December 2022. In addition, he is said to personally own more than 17,000 BTC.

At the time of writing, Bitcoin was trading at $23,187, down by 1.25% in the last 24 hours.

Photo: commons.wikimedia.org

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