Publicly traded MicroStrategy has taken a deep dive into Bitcoin, having bought a total of 38,250 BTC at a rate of $425 million and making the leading digital asset a part of their reserve, replacing cash.

This is a big conversion from MicroStrategy CEO Michael Saylor’s tweet about “bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling,” in 2013.

However, in a conversation with Anthony Pompliano on his podcast, Saylor shared that he is “ashamed” for tweeting what he did, which he didn't even realize until the crypto community reminded him of when the company first announced buying $250 million worth of bitcoin. He said,

“I'm like oh my god, I literally forgot I ever said that…but I took it as kind of like, kind ribbing like I didn't get all worked up about. I'm like you're right, I was wrong, what an idiot I was.”

During his conversation, Saylor further talked about how before agreeing on bitcoin is the right idea, “we all needed to collectively be of the opinion that we were going to be generating cash at infinitum,” for which they went on a journey through corporately over the past year.

The company had $500 million in cash, and they had to decide whether to buy-back stock, buy another company, or keep it for a rainy day.

Saylor credited his friend Eric Rice, who owns bitcoin investment fund and kept on advising him on bitcoin, which the CEO kept on dismissing until “one day we're sitting around my pool in Miami and he starts explaining it and something clicks in my head that maybe this is a pretty good idea.”

So, here they had to decide between precious metal and bitcoin after dismissing commercial real estate and equities and “I want something that can go up by a factor of 10,” Saylor said.

He compared Bitcoin to Amazon and Apple when they first came out — a good investment that has a digital dominant network and dematerialized something fundamental. So, you invest in that thing when they have a hundred billion dollar market cap because,

“When they're ten times bigger than the next biggest thing, and they're a hundred billion dollars, they're probably going to crush everything.”

Saylor, however, isn’t interested in hundreds of other cryptos available in the crypto space. Because, while it’s “great” to have all that innovation which may or may not work, an outsider needs something in which one can put in their $500 million and,

“Everybody in the community is going to spend every iota of their energy to make sure no one f's with that network.”

Not to mention, bitcoin is the dominant crypto, and nothing comes close to it. Also, community ethos is one of the key drivers of their belief in its success.

And although BTC is volatile, what other choice does anyone have in the current environment.

“Let's be honest there's a negative real yield on everything else,” whether it’s gold, bond, or cash.

“Every other non-volatile asset is a negative real yield, which means that everything else is lifeblood draining out of my veins,” said Saylor, adding he would choose the asset with volatility over “non-volatile cash that bought 30 percent less in a matter of eight weeks.”

Moreover, in the next ten years, with people coming into move hundreds of millions of dollars, they will tend to damp all the volatility because it’s in their interest.

“I think people were kind of oblivious to the need to slash the role of bitcoin and the bitcoin narrative of digital gold – this is the ultimate inflation hedge,” said Saylor, who sees the digital asset as a 1000x better than the yellow metal.

The post MicroStrategy CEO: Bitcoin is the "Ultimate Inflation Hedge,” 1000x Better than Gold first appeared on BitcoinExchangeGuide.

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