Bitcoin always has big names behind it, and – why not?
According to MicroStrategy founder Michael Saylor, the rise of Bitcoin as an investment could herald the end of gold as an asset class in the long run.
Saylor, the outgoing CEO of MicroStrategy and a crypto bull, made this claim last December.
Fast forward eight months: During an interview with Stansberry Research on Saturday, Saylor indicated that the precious metal would certainly undergo “demonization” as a result of the rise of cryptocurrencies, particularly Bitcoin.
As the crypto has grown in popularity, some supporters believe it could eventually replace gold as a store of value and replace the yellow metal.
Bitcoin is expected to surpass gold as a store of value
Despite the current market crisis, prominent crypto investors have argued that the prediction of Bitcoin dethroning gold is still on track.
“The only thing threatened by bitcoin is gold,” Saylor said during a recent Yahoo Finance Live discussion.
Without mincing words, Saylor said this about gold:
“The smartest thing to do is sell the entire $10 trillion in gold and invest in Bitcoin. Gold is a dead rock. It’s the worst performing asset, no debate. There’s no hope for it.”
Outgoing MicroStrategy CEO Michael Saylor. Image: MercadoCrypto.
However, Saylor admitted that the coin’s journey to displace gold would be marked by certain “highs and lows.” Interestingly, the billionaire stated that, unlike gold, Bitcoin has a stronger potential to be embraced as a currency by more states.
Ray Dalio, an American billionaire investor and hedge fund manager, agrees with Saylor. He revealed in May last year:
“I only own a modest amount of bitcoin. I’m not a big owner,” Dalio told CNBC Make It. “You want to buy specific assets to diversify your portfolio, and BTC is similar to digital gold.”
Unlike gold, Saylor believes the crypto has a better chance of being embraced as a currency by more jurisdictions.
“Conventional opponents and mainstream pundits don’t understand the crypto economy, Bitcoin, or volatility…Over time, crypto will eventually demonetize gold.” In other words, Saylor believes that gold will not be used “as money in the 21st century”.
Crypto vs. Gold: Market Value Comparison
The market value of BTC is often compared to gold. At the time of writing, Bitcoin has a market value of $460 billion, far short of the yellow metal’s total value of $12.3 trillion as of March 2 this year.
Meanwhile, Saylor has come under fire after MicroStrategy experienced significant losses. The company posted quarterly revenue of $122 million in the first six months of this year, compared with estimates of $126 million.
MicroStrategy also lost $919 million, of which $917 million was related to its digital currency investments.
BTC total market cap at $458 billion on the weekend chart | Source: TradingView.com Featured image from Bitcoin.com, Chart from TradingView.com