Michael Saylor Shares Experience of Losing Six Billion Dollars Reveals How He Maintained Positivity During Bitcoins Drop to 16K
The CEO of MicroStrategy, a software maker, suffered a staggering loss of $6 billion in the year 2000. Looking back on this event, when questioned about losing such a massive amount in a single day, Saylor admitted that the experience was incredibly stressful and unpleasant. He acknowledged the impact it had on shareholders, employees, and their families, emphasizing that the crash of a public company’s stock affects far more people than just the executives.
During a conversation with The Iced Coffee Hour, Saylor highlighted the fact that for individuals with substantial wealth, like a billion dollars, losing six billion may not significantly alter their lifestyle. However, for small investors and employees, such a financial loss can be life-changing. The most difficult part for Saylor was recognizing that these individuals were adversely affected by the loss. He then shifted the discussion towards Bitcoin, offering advice to investors on how to approach it.
Saylor recommended that those who are not willing to hold onto Bitcoin for at least ten years should not have it for even ten minutes. He emphasized that investing in Bitcoin is not advisable if you anticipate needing the money within the next four years. While no one has lost money holding onto Bitcoin for more than four years, the key is to view it as a long-term investment over a decade. Saylor suggested that those lacking this long-term conviction should spend more time researching and contemplating until they are ready to commit to holding Bitcoin for a decade.
Expressing confidence in Bitcoin, Saylor stated that he believes the odds are strongly in his favor. Reflecting on the past, he mentioned that around 18 months ago, Bitcoin had a market cap of about $2.5 billion, and despite others panicking, he remained calm. When Bitcoin’s value plummeted from $66,000 to $16,000, people asked him what his plan was. His response was to wait for the price to rise once more, convinced that the drop was an overreaction and that Bitcoin’s worth would continue to climb.
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