Blockstream CEO Adam Back Praises Michael Saylor's Bitcoin Advocacy

Adam Back, the CEO of Blockstream and a prominent figure often speculated to be Satoshi Nakamoto, the pseudonymous creator of Bitcoin, recently shared his views on Michael Saylor, the CEO of MicroStrategy and a notable Bitcoin advocate. Back's comments offer valuable insights into the dynamics between two influential figures in the cryptocurrency space.

Back, who was one of the first recipients of Satoshi Nakamoto's emails in 2009, has been a long-time proponent of Bitcoin and blockchain technology. His early involvement and expertise in the crypto community have established him as a respected voice in the industry. In his recent remarks, Back commended Michael Saylor's steadfast commitment to Bitcoin, highlighting Saylor's role in promoting the adoption of Bitcoin as a store of value and a hedge against inflation. Back noted that Saylor's strategic investments in Bitcoin have not only benefited MicroStrategy but have also contributed to the broader acceptance of cryptocurrencies in the mainstream financial world.

Back also discussed the impact of Saylor's advocacy on the crypto community. He emphasized that Saylor's public statements and investments have helped to legitimize Bitcoin in the eyes of traditional investors and institutions. This, in turn, has led to increased interest and investment in the cryptocurrency market. Back believes that Saylor's efforts have played a crucial role in shifting the narrative around Bitcoin from a speculative asset to a viable investment option.

During a conversation with Bitcoin Podcast host Stephan Livera at the BTC Prague conference, Back argued that the premium paid for MicroStrategy's stock was not exaggerated. He noted that the firm has rapidly doubled the amount of Bitcoin per share, reducing risk for investors. Back explained that the premium in the stock prices of companies holding Bitcoin treasury is not theoretical but a natural result shaped by market conditions. He pointed out that companies' issuance of new shares at this premium and the purchase of Bitcoin increases the amount of BTC per share. “These companies buy more Bitcoin thanks to the premium, thus increasing the amount of Bitcoin falling to shareholders,” he said.

Back described MicroStrategy’s strategy as “an arbitrage between the fiat world and the future of Bitcoin,” stating that this method does not put investors at risk in the long run because the company compensates for this premium with Bitcoin. However, he noted that smaller companies trading at a higher premium pose a greater risk of volatility. Giving the example of MetaPlanet, Back said the company’s NAV multiple fluctuates between 5 and 10, which can stress investors. He emphasized that such companies can be more agile in accumulating Bitcoin due to their smaller size and being located in regulatory advantageous regions.

Back also opposed Bitcoin's “diminishing returns” theory, drawing attention to the anomalies experienced in previous cycles. He argued that factors such as the COVID-19 pandemic, China's mining ban, and money supply expansion overshadowed the 2020-2021 cycle, making historical data misleading. Back suggested that there could be an “S-curve”-like acceleration in Bitcoin adoption, triggering widespread adoption and breaking previous patterns.

In the latter part of the conference, Back spoke about Blockstream’s new initiatives. He explained that with the company’s new application, users will be able to buy Bitcoin directly to their own wallets. He also stated that they are trying to make self-storage more accessible with Jade and Jade Plus hardware wallets. “Self-custody is critical to the decentralization of the Bitcoin network. People holding their own keys is crucial to the security and control of the network,” Back said.

Back's comments on Michael Saylor underscore the significant influence that key figures can have on the trajectory of the cryptocurrency market. His praise for Saylor's advocacy and strategic investments reflects the growing acceptance of Bitcoin as a legitimate asset class. As the crypto industry continues to evolve, the insights and actions of leaders like Back and Saylor will play a critical role in shaping its future.