Yesterday we commented on CryptoTrend that Michael Saylor assured on Twitter that gold and Bitcoin could not coexist and, therefore, at some point the crypto dragon would tear the precious metal to pieces. But why? What does Bitcoin have that makes it better than gold according to Michael Saylor?
The Bitcoin Dragon
As you may well know, this year the crypto community was in shock after a large tech company called MicroStrategy invested $ 425 million in Bitcoin.
The milestone undoubtedly marked a before and after for Bitcoin and the crypto market in general. Yet it was so surprising and unexpected that many questions remain as to why the company decided to ditch gold and invest in Bitcoin.
Just yesterday Michael Saylor, CEO of MicroStrategy, had a very interesting conversation with CoinDesk, specifically with its chief content officer, Michael Casey.
So, from Saylor’s perspective, gold has everything to lose. Casey questioned Saylor if the precious metal could maintain its position as a store of value in an increasingly digital world.
To this Saylor responded with a resounding no. Bitcoin has a huge advantage over gold in this regard, according to Saylor. Holding gold is “an outdated approach to storing value,” he said. Bitcoin is “a million times better.”
How did MicroStrategy decide to invest in BTC?
According to CoinDesk, Saylor explained that MicroStrategy had to search for assets to take refuge as the US Federal Reserve printed more money to the economy through stimulus.
The company basically realized it had $ 500 million in cash, and if it did nothing, inflation was going to eat it up. Consequently, MicroStrategy executives were forced to move away from cash. But why Bitcoin?
“What we are trying to do is preserve our treasure.”. “The purchasing power of cash is rapidly degrading”Saylor explained to CoinDesk.
In this way, once the company was convinced that the dollar was not the place to be for excess capital; they started looking for alternatives.
“We had to go through real estate, bonds, stocks, precious metals, derivatives or crypto ”, Saylor said.
Saylor found a fundamental problem in the gold market: It is not scarce. According to Saylor, there are two forces that collide: the interests of the gold miners and the gold holders.
But, a bigger problem for the gold market is investors fleeing and taking refuge in Bitcoin. In this way, Saylor is completely sure that investors are going to scrap gold at some point.
“Ultimately, you have to find something you can’t print anymore that doesn’t have its fundamentals tied to a fiat currency, and the only thing I can find right now is Bitcoin,” emphasized.