MicroStrategy founder Michael Saylor says the crypto scandals and bankruptcies of 2022 will benefit Bitcoin (BTC) in the long run.
In a new fourth quarter MicroStrategy earnings call, the Bitcoin bull predicts a more rational approach to projects and enterprises in the crypto space in the aftermath of the many failures last year, including the FTX implosion.
He says many of the token projects that fell apart during the challenging microeconomic conditions in 2022 were doomed from the start due to weak use cases.
He also says Bitcoin’s strength as a decentralized digital commodity was underscored by the failures of other projects that did not share those same qualities.
“If you look at the microeconomic situation in the past 12 months, most of the crypto enterprises and the crypto assets and the crypto use cases have melted down in that time period. Of course, we know the stories of the bankruptcies of BlockFi and Celsius and FTX, and Genesis and Voyager and Alameda. And we also know about the meltdowns of all the crypto tokens, the LUNA token, the Terra token, the FTT token, etc. In our opinion, these were all very weak use cases, and they are very fragile structures. And it was a matter of time before they do melt down.
The meltdown of that has created short-term negative headwinds for Bitcoin, because Bitcoin is cross-collateralized with all these other cryptos. But long term, the rationalization of the crypto market will be beneficial for Bitcoin. It has educated an entire generation of investors on the benefits of Bitcoin as a decentralized digital commodity and the benefits of not having counterparty risk.”
Bitcoin is worth $23,451 at time of writing.