MicroStrategy CEO Michael Saylor says the mania-driven Dogecoin (DOGE) rally is beneficial to the crypto sector at large.
In an interview on Morning Invest, Saylor, whose company now owns 91,579 Bitcoin, says that the hype surrounding the meme crypto asset and other speculative investing strategies is likely fueled by an utter lack of confidence in traditional financial markets.
As investors are discouraged by an inflating dollar, reasons Saylor, they are turning to investing opportunities that embody huge risks, like GameStop and meme coins. The increasing risk appetite, notes Saylor, is good for crypto.
“[The public has] lost confidence in conventional strategies, conventional money, conventional bonds, and conventional treasury strategies. Because they’ve lost confidence, and they’ve literally lost hope, they’re being driven to speculate more and the result is the GameStop saga, the result is the Archegos saga where they put on huge leverage on equity. The result is the SPAC explosion where people are literally buying speculative shell companies that do nothing but potentially do something that we don’t know what, but they figure that’s better than holding cash.
They’re crowding into cryptos and the wise [investors] are buying Bitcoin because they understand that this is sound money for the next hundred years, but I also think people are speculating in other cryptocurrencies and it’s not that different than the GameStop thing. People are looking for something other than to wait and watch their money get debased.”
Saylor adds that Dogecoin is providing a lot of fun and entertainment for people, attracting crypto newbies in the process.
“I think also, it provides entertainment… Dogecoin is fun, and if I take away the ability to go to professional sporting events and gamble at the sporting event, then this is another way for me to gamble on the market. So I think ultimately it’s understandable in the monetary environment. It’s good for the crypto industry, it’s generating massive awareness and massive enthusiasm, lots of people are signing up, lots of people are opening up accounts…
I don’t think that you’re going to want to leave Dogecoin to your grandson or granddaughter, but on the other hand, I wouldn’t begrudge you gambling on a boxing match or gambling on a basketball game if it were legal in the jurisdiction when you do it.”
While the billionaire technology entrepreneur is optimistic about DOGE, others aren’t so sure. Ethereum co-founder and Cardano creator Charles Hoskinson recently said that Dogecoin poses an existential threat to the crypto markets.
“When someone buys DOGE, if you look at the commentary of the community, 99% is, ‘We’re going to get rich…’
If that mentality persists, there are only so many doublings you can have before it doesn’t happen anymore and then a panic sale happens…
So catastrophic failure is the most likely outcome here, as people with wildly unrealistic expectations and very limited experience investing acquire these assets, and then once the failure occurs, their opinion of the entire industry will be the same as Bill Maher’s, the same as a lot of people in the mainstream, like Charlie Munger.”
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