Bitcoin: Is Michael Saylor Playing With Fire?

Unstoppable, that’s the word that comes to mind when thinking of MicroStrategy and its incredible Bitcoin-focused plan. Led by Michael Saylor, the company has made BTC its weapon of choice, even borrowing massively to accumulate it. But is this bold bet flaw-free? Anthony Pompliano, a major figure in the crypto world, lifts the veil on the unsuspected risks of such a strategy.

Bitcoin: Between Financial Genius and Unexplored Abysses

MicroStrategy, under the impetus of Michael Saylor, embarked on an intriguing adventure that will allow it to be valued in the trillions: financing its massive purchases of bitcoin via convertible debt. A tactic that, on paper, is quite compelling. By selling shares with a 55% premium, the company raises considerable funds to invest in the flagship crypto.

However, Anthony Pompliano warns:

« When everyone says there’s no risk, an alarm goes off in my head. »

There is only one risk in @saylor’s $MSTR play and the chances of it happening are infinitesimal https://t.co/yMMWPKCiU1

— Max Keiser (@maxkeiser) November 30, 2024

The real danger, according to him, lies in the unknowns: the legendary volatility of BTC, market fluctuations, and, above all, the mirage of absolute certainty.

Three key elements to understand the risk:

• The dependence on fluctuations in the value of bitcoin, unpredictable and brutal;
• Exposure to regulatory risk, particularly in the United States;
• The fragility of the entire plan if investors lose confidence.

In short, financial genius can also become a trap for those who forget that bitcoin remains a high-risk asset.

USA: Towards a National Reserve in Bitcoin?

In an unexpected turn, Anthony Pompliano revealed an idea that could revolutionize the American economy: creating a national reserve in bitcoin. He proposes that the government invests 250 billion dollars in crypto to counteract the devaluation of the dollar.

This idea, supported by figures like Donald Trump, could transform the position of BTC in the United States. But a dark scenario lingers: what would happen if bitcoin were to be banned from the territory? Pompliano admits, although it’s unlikely, such a measure would destroy the stock prices of MicroStrategy and shake the market.

Despite everything, the allure of a Bitcoin sanctified at the heart of American economic policy fuels both the hopes and fears of investors.

The overambitious goals of MicroStrategy are not without risk. The volatility of bitcoin remains a formidable enemy: the company knows something about it, having suffered a loss of 30 billion in just four days.