Coin Stories Podcast: Michael Saylor on Bitcoin crash, Luna/Terra Meltdown

No asset class has had as rough a week as cryptocurrencies. One of the top 10 cryptos by market cap, Luna/Terra, has seen its value implode overnight.

As a “stablecoin” supposedly pegged to the US dollar, the selloff has sent shockwaves across other stablecoins, as well as Bitcoin, as Luna/Terra dumped its Bitcoin reserves onto the market in a failed attempt to stem its losses.

This has created a potential liquidity event that may send further shockwaves across the space in the coming weeks. On the Coin Stories Podcast, Michael Saylor, CEO of MicroStrategy (MSTR) and Bitcoin enthusiast, surveys the damage done from this drop.

Currently, markets are just tracking inflation based on the CPI index, which has been lagging. And it hasn’t reflected the massive inflation in assets that occurred at the start of the money printing and zero percent interest rates that started in early 2020.

Now, that process is reversing as interest rates rise and the economy has slowed to a crawl. So it’s no surprise that asset classes that surged higher have since come back down. And as those asset classes come down, weaker cryptocurrencies and stocks will likely fare worse than average.

Ultimately, the current market drop will likely lead to a market event that requires central banks to reverse course. That means going back to coninue printing fiat currency. That should bode well for cryptocurrencies, with Bitcoin continuing to get the lion’s share of the space.

To listen to the full and wide-ranging interview, click here.