There have been three major crashes larger than 50% or more in bitcoin since 2012:
Mid-2013, Nov-2018, and Mar-2020.
Metrics overall remain bullish as they did in those prior corrections. We are currently in a potential V-bottom. As in a potential reversal and challenge and eclipse of all-time highs.
But first let's deal with some FUD. As an investor, you need to emotionally detached and drill into the numbers.
SAYLOR FUD
Will Saylor be forced to sell BTC as its price drops? Michael Saylor received $1.6 billion in recent offers from VCs and hedge funds as they want to accumulate bitcoin, so Microstrategy is increasing its position in bitcoin by around $400 million dollars.
The latest bond issuance will only be secured on the BTC that he plans to accumulate on the proceeds from this issuance.
let's look at the bonds;
He has two currently outstanding bonds — One is a zero-coupon 2027 Maturity Convertible bond, the other is a 0.75% coupon 2025 Maturity Convertible bond.
Only the 2025 bond requires interest to be paid on it. The outstanding amount is 650M — This is 0.75% of interest paid S/A — I.E — the annual interest payment is only $4.875M. Microstrategy is currently making a profit $50M a year. Covering these payments won’t be an issue.
Saylor has diamond hands. He took real-life leverage that can’t get him liquidated. BITMEX traders take up to 100X leverage on a volatile asset using the underlying BTC as collateral!
He rode his stock from 3130 to 11 USD, almost a complete wipeout, survived, and prospered. He is made of strong stuff. Microstrategy trades around $518 at the time of writing.
BITCOIN MINING IS DESTROYING THE EARTH
As Saylor has pointed out, mining operations account for but only 0.5 percent of the world's wasted energy. It is extremely efficient for the amount of capital it secures.
COUNTRIES WILL SOON START TO FOMO INTO BTC
In addition to El Salvador, Panama, and Paraguay making bitcoin legal tender, we now have Brazil, Argentina, and Mexico also considering this possibility. These are countries where millions are exposed to massive loss of buying power from their currencies, which routinely plummet 90% in the course of a decade.
Many remain unbanked. Their respective economies are unstable. Yes, bitcoin is volatile, it is still a far better alternative. As Bitcoin matures, bitcoin’s volatility will decrease markedly. Bitcoin is a protocol, a Network, and an Asset. As countries adopt it marks an important sea change, others follow like lemmings in Fear Of Missing Out!
