MicroStrategy’s Saylor Shills Bitcoin Over Gold as Crypto Community Grows

Share Article
In Brief
  • Michael Saylor has described bitcoin as a "harder asset than gold" because its supply cannot be changed regardless of its price.

  • He said he is interested buying and holding BTC for the long term.

  • Bitcoin is attracting more newcomers.

  • promo

    Bybit Launchpool: Stake BIT to Earn BIT. Redeemable Anytime. Join Now!

The Trust Project is an international consortium of news organizations building standards of transparency.

MicroStrategy CEO Michael Saylor believes that bitcoin is a harder asset than gold and is less prone to losing value due to supply pressure.

Sponsored



Sponsored

In an interview with Stansberry Research’s Daniela Cambone, Saylor stated that gold is simply a commodity whose supply can be increased, unlike bitcoin.

According to Saylor, his recent decision to move $425 million of his company’s cash reserves into bitcoin was one that helps him. He also stated that the intervention of the Federal Reserve in expanding monetary supply over the past decade triggered fears about his US dollar reserves losing value over time. 

Sponsored



Sponsored

Gold vs Bitcoin: Saylor’s Position

Saylor said that gold acts fundamentally like the commodity it is. This, in his words, means that if the price of gold goes up, so does the incentive for gold mining and prospecting, which will inevitably lead to increased gold supply, resulting in a price drop.

Bitcoin, on the other hand, has a fixed supply — no matter how high its price goes, there is no way to create more bitcoin than 21 million. This, in his opinion, makes bitcoin “a harder asset than gold.” According to him, this was what motivated him to convert 75 percent of his company’s reserves away from what he had earlier termed “a $500 million melting ice cube.”

Bitcoin Newbies 

Saylor’s other premise for piling into bitcoin is that it offers an unprecedented amount of liquidity compared to any other security typically used in the financial markets. Unlike gold or the US dollar, he said, bitcoin can be liquidated in exchange for something else at any time of the day, all year round, anywhere on earth.

Bitcoin also attracted another new investor in recent days. Former UKIP MEP Godfrey Bloom announced on Twitter that he bought some bitcoin for the first time, saying that he already had plenty of gold and silver assets in his portfolio. Bloom is 70 years old and is looking to learn more about crypto. 

Meanwhile, MicroStrategy’s Saylor revealed that the decision to become a bitcoin whale was welcomed within the company, as his employees see bitcoin as the cutting edge of a new digital wave. It probably doesn’t hurt that bitcoin has outperformed most other assets year-to-date, including gold and the S&P 500. 

Saylor said his interest in bitcoin is for the long term and he will not predict how high the price will go. This, he said, is because he is not interested in buying and selling in the manner of a day trader but in buying and holding like Warren Buffett.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

David is a journalist, writer and broadcaster whose work has appeared on CNN, The Africa Report, The New Yorker Magazine and The Washington Post. His work as a satirist on 'The Other News,' Nigeria's answer to The Daily Show has featured in the New Yorker Magazine and in the Netflix documentary 'Larry Charles' Dangerous World of Comedy.' In 2018, he was nominated by the US State Department for the 2019 Edward Murrow program for journalists under the International Visitors Leadership Program (IVLP). He tweets at @DavidHundeyin

Follow Author

Limited offer! Learn to mine and trade crypto today for free

Join

Bit2Me ICO JUST STARTED! Buy B2M token now.

Buy now!

The BIT Time Rush. 8M BIT to Be Won. Three Innings; Massive Winnings.

Join Now!