Michael Saylor: Ordinals Are Like Really Awful Sawdust Donuts – A Stupid Idea
Microstrategy's Michael Saylor weighs in on Ordinals, ETFs, and altcoins | Credit: Shutterstock
Key Takeaways
- Microstrategy’s Michael Saylor thinks Bitcoin Ordinals are a waste of time, but shouldn’t be banned
- Saylor thinks all altcoins are securities
- ETFs: Saylor doesn’t “think it drives bitcoin to $5 million overnight.”
Michael Saylor is the executive chairman and co-founder of MicroStrategy, a major software analytics firm. The company also happens to be one of the biggest holders of Bitcoin around the world. Last week, Microstrategy and Saylor invested $347 million into Bitcoin, bringing the company’s total Bitcoin stock to $4.5 billion.
Saylor is obviously a great fan of Bitcoin. But, he has different feelings about derivatives of the cryptocurrency, whether they’re Bitcoin-based NFTs or altcoins.
In an interview, Michael expressed his thoughts and experiences regarding everything crypto. Most notably, he highlighted his feelings regarding Bitcoin Ordinals, NFTs that are stored on the Bitcoin blockchain.
Ordinals Are Not A “Fatal Defect”
Bitcoin Ordinals NFTs gained a lot of traction lately. June was generally a good month for NFTs on the Bitcoin chain, reaching a trading volume of $15 million. Understandably, anything that makes that kind of money attracts the attention of investors, enthusiasts, and legislators alike.
In his interview , Saylor made it very clear that he thinks of Ordinals and other Bitcoin NFTs as a horrible investment.
“Just like if you open up a bakery and you sell really awful donuts made of sawdust. It’s a stupid idea. I wouldn’t invest in it. I won’t buy your sawdust donuts. You’ll probably go bankrupt.”
However, Saylor was trying to make a point regarding the potential change of protocol on the Bitcoin blockchain which aims to ban NFTs on the chain, such as Ordinals. The Microstrategy executive is opposed to creating a protocol designed to ban something that doesn’t pose a real danger.
“My general view on the protocol is you shouldn’t really change it unless there’s an overwhelming consensus in the community that we’re facing a fatal defect.”
His “sawdust” commentary was aimed at criticizing the development of such a protocol as it was to criticize the NFTs themselves.
“I don’t think the mayor should pass a law saying you have to get permission before you sell your sawdust donuts in my town.” He also said that “I think most innovation ought to take place consistent with the protocol. If they want to create new open protocols, they should create them on Layer 2s like Lightning.”
Altcoins Are ‘Unregistered Securities’
Saylor has a much harsher stance on altcoins, such as Ethereum. While he might be biased, considering his affinity and financial investment in Bitcoin, he doesn’t hide it as he gives his two cents on the matter.
“Ethereum is a different situation, and all these crypto tokens are different issues. They’re unregistered securities.”
“If I actually create my own token and I keep a lot of it and I sell some to the world and I manipulate the price of it, and I don’t tell you how many I have. And then I change the protocol to give myself more. Without telling you, that was an unregistered security, right?” He also added that “I’m not here to endorse a currency or a trade. I’m here basically to say I like Bitcoin.”
Lucky for Saylor, again, one of the world’s biggest holders of Bitcoin, the SEC shares the same sentiment regarding altcoins. Thankfully Ethereum makes it on the SEC’s “nice list”, alongside Bitcoin, Bitcoin Cash, LiteCoin, shielding the token from the SEC’s crusade against altcoins.
Bitcoin ETFs Are “A Milestone”
Saylor also took some time to address another conundrum facing the SEC, ETFs. In the wake of BlackRock applying for a Bitcoin spot ETF, the market has seen not only a surge of ETF applications filed by the likes of Fidelity, but the token itself has also increased in price by over $4,000.
Naturally, Saylor is in support of such a movement as it directly increases his company’s wealth. However, he keeps his optimism in check by saying that “It’s a milestone on the road to institutional adoption,” I think it’s important, but I don’t think it drives bitcoin to $5 million overnight.”
Saylor also said that “I think the spot ETF is an endorsement by the regulators of bitcoin as a legitimate asset, but also it provides an onramp where I could go and I could buy $10 million of it in 30 seconds by punching a button.” But little did he know, the SEC would actually come back and say that the regulating body sees recent Bitcoin spot ETF applications as “inadequate” . A statement that may not just stifle the market’s progression, but may also lead to brakes being pumped on Bitcoin price surge.
