Strategy (MSTR) chairman Michael Saylor is defending his company’s large crypto investments by looking into global economic history. Commenting on a newly released chart showing how long paper money lasts, Saylor stated, “Fiat currency is the problem. Companies, institutions, securities, and technologies that strengthen Bitcoin are part of the solution. We can debate ideas without mistaking allies for enemies”.
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The research chart shows that government money has a history of failing, which helps explain why Strategy continues to put its cash into digital assets.
History Shows When Fiat Currencies Failed Us
The historical data, put together by a Bitcoin company called River, looks at more than 60 government currencies since the year 1700. The findings show that the average paper money lasts for only 27 years before disappearing. Many of these currencies disappeared completely because high inflation caused prices to go up too fast.
For example, Germany’s paper money collapsed in 1923, Hungary’s cash fell apart in 1946 when prices doubled every 15 hours, and the Zimbabwe dollar completely crashed in 2008.
Even the currencies that survived have seen huge drops in what they can actually buy. Over time, the U.S. dollar has lost 97% of its buying power, while the British pound is down 99.7% and the Japanese yen has lost 99.9%. Even the euro, which is a much newer currency, has lost 44% of its value since 1999.
Strategy’s Bitcoin Holdings Are Still Large
River’s study notes that normal paper money suffers from central control and endless printing. By comparison, Bitcoin has a set limit on how many coins will ever exist, which was planned to help it outlast government fiat currencies. This long-term view shapes Strategy’s business plan. Saylor sees Bitcoin as safe global property meant for final savings, rather than a tool for small everyday payments.
Despite this defense, the current market presents a rough path for MSTR stock. Bitcoin currently trades around $63,252, which is down 47% over the past year.
Even with the market drop and a recent sale of 3,588 BTC this month, Strategy still holds the world’s largest corporate stash at 843,775 Bitcoin.
Is Strategy Stock a Buy, Hold, or Sell?
According to TipRanks, Strategy (formerly known as MicroStrategy) stock has a consensus Strong Buy rating among 14 Wall Street analysts. This rating is based on 13 Buys and one Hold rating assigned in the past three months. The average 12-month MSTR price target of $275.46 implies 195.9% upside from current levels. (See MSTR stock forecast)
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