Benzinga - MicroStrategy Inc. Executive Chairman Michael Saylor is one of the most outspoken proponents of Bitcoin. He is constantly hailing the asset on his social media platforms and speaks highly of Bitcoin in interviews. His company has amassed a huge share of Bitcoin in recent years. It owns over 214,000 tokens, which equates to over 1% of the entire Bitcoin supply.
Saylor sees value in Bitcoin beyond just a hedge against inflation or a quick swing trade. When asked about a potential exit strategy, Saylor said, "Bitcoin is the exit strategy" and does not see the firm selling its position any time soon.
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These remarks were bolstered by an April 1 post on X in which Saylor wrote that "Digital property is a cheerful & constructive solution to everyone’s economic problem."
Saylor argues that crypto, specifically Bitcoin, can potentially solve various economic problems. Is this claim true? Take a look at some data and where the market for digital property could go.
The state of digital property use is fairly limited. The largest areas where it is seen are with non-fungible tokens (NFTs) and digital real estate.
The NFT market performed well in 2020 and 2021, with various NFTs selling for hundreds of millions and celebrities acquiring them left and right. However, activity in the NFT market has declined in recent years. Most see this as a result of NFTs offering little value beyond their scarcity.
The digital real estate market is somewhat more consistent. It was valued at $1.4 billion a year ago and is expected to more than triple by 2026. Digital real estate is seemingly more attractive than NFTs because of the possibility of the metaverse becoming more popular. If this is the case, digital real estate could be a solid investment, although it may not be "the solution to everyone's economic problem," as Saylor said.
In terms of the potential for digital property, the possibilities are extensive. Some examples include:
- Using digital property to allow everyone to see what occurs at each stage of a supply chain
- Tracking health and education records
- Making insurance claims easier to file and receive payment more efficiently
- Administering government benefits
These benefits are some of the more niche uses of digital property that could occur in the coming years. These uses, if realized, could fundamentally change society by increasing efficiency and access to programs and technology and helping facilitate globalization.
Digital property currently is only useful in a few cases that are mainly used by the crypto community. But the potential for the technology to impact our daily lives is there.
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