Bitcoin always has big names behind its back, and – why not?
According to MicroStrategy founder Michael Saylor, the emergence 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 in December of last year.
Fast forward eight months: During an interview with Stansberry Research on Saturday, Saylor indicated that the precious metal would most certainly undergo “demonization” as a result of the rise of cryptocurrencies, particularly Bitcoin.
As the crypto has grown in popularity, some supporters believe that it may eventually supplant gold as a store of value and replace the yellow metal.
Bitcoin Expected To Outshine Gold As Store Of Value
Despite the current market crisis, prominent crypto investors have maintained that the prediction of Bitcoin dethroning gold is still on track.
“The only thing threatened by bitcoin is gold,” Saylor remarked during a recent Yahoo Finance Live discussion.
Without mincing words, Saylor said this about gold:
“The smartest thing you could do is sell all of your $10 trillion in gold and invest in Bitcoin. Gold is a dead rock. It’s the worst-performing asset, no debate. There is 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 of being embraced as a currency by more states.
Ray Dalio, an American billionaire investor and hedge fund manager, agrees with Saylor. He revealed in May of last year:
“I only own a modest quantity of bitcoin. I’m not a large 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 possibility of being embraced as a currency by more jurisdictions.
He stated:
“Conventional opponents and mainstream experts don’t grasp the crypto economy, Bitcoin, or volatility… Over time, the crypto will eventually demonetize gold.” In other words, Saylor believes gold will not be used “as money in the 21st century.”
Crypto Vs. Gold: Market Cap Comparison
The market capitalization of BTC is frequently compared to that of gold. As of this writing, Bitcoin has a market cap of $460 billion, a far cry from the yellow metal’s total value of $12.3 trillion as of March 2 of this year.
Meanwhile, Saylor has come under fire after MicroStrategy experienced significant losses. The company recorded quarterly revenue of $122 million in the first six months of this year, compared to projections of $126 million.
Also, MicroStrategy lost $919 million, $917 million of which was linked 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