Michael Saylor – the CEO of MicroStrategy – says that bitcoin is a thousand times better than gold in a recent interview.
Michael Saylor: BTC Beats the Pants Off Gold
For those who may be unfamiliar, MicroStrategy made headlines earlier this year when as a major institutional enterprise, it decided to purchase more than $400 million in bitcoin, making it one of the first institutions to come out and do so. It put all its money into the world’s number one digital currency by market cap, and it did so when bitcoin was trading for only around $11,000 – considerably less than what it’s presently going for.
In addition, MicroStrategy seemed to set off this new trend with institutions, as following its purchase, many other large companies, such as Stone Ridge and Square, decided to purchase large amounts of bitcoin worth roughly $50 million or more. It appears many institutions suddenly wanted to follow in the firm’s footsteps and get their fingers on the world’s primary digital asset.
Michael Saylor has gone on record talking about how he thinks the future of finance will largely revolve around bitcoin and other cryptocurrencies, which is why he so confidently purchased such a large amount of the asset. In a recent interview, he went so far as to compare bitcoin to gold and even commented that its structure and status on the financial ladder is considerably stronger.
Gold is the least abundant of the commodities, but you can still produce gold… Hoarding gold is an antiquated approach to storing value and bitcoin is a million times better.
One of the reasons why his company decided to purchase so much bitcoin was because of the recent COVID scare. He says that MicroStrategy held about $500 million in cash reserves, something the firm was initially quite happy about, though things took a nosedive as soon as the pandemic reared its ugly head. From there, the US dollar fell in value as inflation took over, and as a result, the company’s cash reserves didn’t hold the strength and resilience they once possessed.
A Rarer Asset Will Be Stronger in the Future
By contrast, bitcoin had also taken a fall during the pandemic, but took only two months to fix itself. As we all remember, the price of one bitcoin fell briefly below the $4,000 line in the middle of March, but by early May, had shot back up into the $9,000 range. Two months after that, the currency was trading in the five-figure range once again, and the asset was back on its feet.
In the end, it came down to bitcoin and gold, and Saylor ultimately felt BTC was stronger given that gold is not as rare and can be mined more often. Bitcoin has a finite amount, and when it all runs out, the coin’s status will likely come to an end, meaning it’s likely to grow in value more over time.