Saylor's Billionaire Test: Can Bitcoin Survive the Luxury Test?

Michael Saylor, executive chairman of Strategy, says Bitcoin passes his Bernard Arnault test. The test is simple: if you have a lot of money, invest in something that someone richer than you will want to buy from you in ten years.

Saylor uses the name 'Bernard Arnault' as shorthand for buyers at the top of the wealth ladder, including those with durable taste and luxury money. Arnault chairs LVMH, a luxury group behind Louis Vuitton, Sephora, and Tiffany & Co., with an estimated net worth of $142.3 billion.

Saylor argues that Bitcoin passes this test because it is something that someone richer than him will want to buy in ten years. He has run the 10-year clock for six years already and has invested heavily in BTC. Strategy made its first purchase on August 10, 2020, at $11,652 per coin and now holds 840,447 BTC at an average cost of $75,385.

The recent rally puts that position about 2.5% above water, or close to $1.6 billion in paper gains. However, critics remain unmoved. Peter Schiff, a gold advocate, has told investors to sell Bitcoin and Strategy stock as gold topped $4,400 an ounce.