MicroStrategy CEO Michael Saylor has been aggressively purchasing Bitcoin over the last two months of correction. Earlier this week, the cloud computing company purchased an additional 13,000 bitcoins taking its total BTC holdings to over 100K.
Saylor who sees a big opportunity in the future for Bitcoin told Bloomberg that China’s crackdown on cryptocurrencies could prove to be a “trillion-dollar-mistake”. In an interview with Bloomberg, Saylor said:
“The primary dynamic (driving the market) is the China exodus. There’s a forced and there’s a rushed exodus of capital and mining from China that was a bit of a surprise. china had 50% market share of Bitcoin and they were generating 10 billion dollars a year growing at 100% year-over-year. I think that given the growth rate of Bitcoin this will prove to be a trillion dollar mistake”.
Saylor adds that the Chinese crackdown has brought a windfall of Bitcoin miners in North America. Referring to the recent aggressive purchases by MicroStrategy over the last few weeks, the Bloomberg executive asked what if this is not a dip and how much has the company considered the possibility of a prolonged slide.
Saylor responded that the purchases account for more than a 10-year time frame. He also talks compares it to the smartphone revolution over the last decade. Saylor added:
“Bitcoin is the dematerialization of property. We are sucking the value out of gold, real estate, and other property assets, and collectibles and art, we are putting them on a blockchain and we’re giving out to the people. It’s a long term trend, its a million times more efficient than holding your property around on your back”.
Saylor also believes that new regulators in the Biden administration are more progressive and enlightened on Bitcoin.
Chinese Crypto Miners’ Exodus
Following the massive crackdown by Chinese regulators countrywide, there’s a massive exodus of miners from China to North America and parts of Europe. With several miners unplugging their mining rigs, the BTC hashrate has collapsed more than 40% over the last month.
North American places like the U.S. Texas and Miami city are proving to be hot destinations for miners to set up base. Miami Mayor Francis Suarez is working on setting up facilities to set up excess nuclear power clean energy solutions for crypto miners.
Besides, those miners who have completely shut down their operations and now selling their mining rigs at a large discount. This has seriously hurt the businesses of mining manufacturers. As a result, Bitmain Technologies recently announced suspending the global sales of its Antminers.