Bitcoin is a “Harder Asset than Gold,” says MicroStrategy CEO Michael Saylor
MicroStrategy CEO Michael Saylor propagates Bitcoin over gold due to its fixed supply. He wants to buy more BTC and then holds it for a long time.
Bitcoin is Better than Gold
Bitcoin has a priority over gold because the supply of gold can be increased, Saylor says in his recent interview with Daniela Cambone of Stansberry Research. Over the past decade, the Fed has only worked over expanding monetary supply. Fed’s policies are affecting the reserve power of the US dollar and there are now greater chances of currency inflation.
No one knows about the exact supply of gold and it behaves like a commodity. As the gold price jumps, mining companies get high incentives which results in more BTC mining. As the supply goes up, the price value goes down.
In this scenario, Bitcoin is the best asset as it has a fixed supply. Everyone knows that the supply of Bitcoin is 21 million and no one can add or increase it. According to Saylor, the fixed supply feature of Bitcoin makes it superior over gold. What’s more, Bitcoin is “a harder asset than gold.”
Big Players in Crypto World
MicroStrategy argues that in the traditional markets Bitcoin has the highest liquidity. Due to its liquidity nature, Bitcoin can be withdrawn or spent anytime from an exchange irrespective of place.
Institutional players are attracted to Bitcoin more in recent months. MicroStrategy is the latest example of it that had bought Bitcoin worth $425 million. Similarly, many big investors have also added Bitcoin to their portfolios. For instance, ex- UKIP MEP Godfrey Bloom took to Twitter and stated I bought Bitcoin for the first time. Before Bitcoin, he had plenty of gold and silver in his portfolio. Recently, Abra CEO Bill Barhydt also announced on Twitter that he is considering to dedicate 25% of his portfolio to Bitcoin. “I’m considering doubling the allocation of #Bitcoin in my personal portfolio to 25%,” he added. An institutional influx in 2020 has made Bitcoin popular among Wall Street investors.