He described this as a structural friction, not a flaw in the asset itself. In his view, the absence of a fully formed, non-rehypothecating credit system restrains price discovery. Saylor told Brunell:
“I think what holds down the price of the asset is the lack of a fully formed non-rehypothecating credit system.”
For long-term investors, he maintained, short-term fluctuations are largely noise. Those focused on a four-year horizon, he said, should view episodic drawdowns as part of a broader upward trajectory.
Saylor reiterated his long-term outlook, projecting approximately 29% annual returns over a 21-year horizon. He acknowledged that returns may come in waves, but he framed that serpentine pattern as inherent to transformative assets.
Saylor insisted that the “consensus of the cyber security community broadly held is that quantum risk, if it exists, is more than ten years out. It’s not a this-decade thing.”
The Strategy CEO added:
In his view, that intensity is not a liability. It is the byproduct of plugging what he calls “digital capital” directly into a public balance sheet.
FAQ Why does Michael Saylor compare bitcoin to Apple? He argues that both endured steep drawdowns before achieving broad institutional validation. What does Saylor say is holding bitcoin’s price back? He points to limited traditional bank lending and rehypothecation in shadow markets. What is Strategy’s approach to volatility? The company designs preferred instruments to reduce volatility and provide defined yields. Is quantum computing an imminent threat to bitcoin? Saylor says that current consensus suggests any material quantum risk is likely more than a decade away.
