Michael Saylor, CEO of MicroStrategy, touted bitcoin as the solution to DeFi’s problems.
“The sound ethical, economic & technical foundation for DeFi is #Bitcoin,” he tweeted Tuesday.
The bitcoin maximalist has continued to praise the crypto even as the market crashes and MicroStrategy’s investment craters.
Michael Saylor, the crypto-loving CEO of MicroStrategy, sees bitcoin as the answer to many of the questions surrounding decentralized finance, even as the broader market tanks to lows not seen since early 2021.
The bitcoin evangelist says bitcoin will play an integral role over the next stages of development for decentralized finance, or DeFi.
“The sound ethical, economic & technical foundation for DeFi is #Bitcoin,” Saylor tweeted on Tuesday. “The next generation of DeFi will be built using the #Lightning protocol and the #BTC token.”
The Lightning Network is a so-called “layer 2” payment protocol which is layered on top of bitcoin. It’s meant to enable rapid transactions, and some commentators see it as a way to scale bitcoin up and broaden its real-world use.
Saylor also touted bitcoin in a separate tweet in response to a Wall Street Journal report that the SEC’s agenda on digital assets.
“Today @GaryGensler discussed #Crypto regulation with @WSJ,” he tweeted. “Other than #Bitcoin, most cryptos (especially PoS networks) represent unregistered securities lacking the full & fair disclosures necessary to protect investors.”
Meanwhile, Saylor told Bloomberg on Tuesday that MicroStrategy investors shouldn’t worry about a potential margin call on the software maker’s massive bitcoin bet.
“As long as the Silvergate loan remains collateralized with an LTV less than 50%, there is no margin call,” Saylor told Bloomberg, referring to loan to collateral value ratio. “We manage accordingly.”
Bitcoin on Wednesday briefly touched $21,000, and is now trading at around $21,317. The world’s biggest cryptocurrency has crashed roughly 26.65% over the last five days.
Read the original article on Business Insider