Bitcoin is a million times better than gold, said MicroStrategy CEO
27. Oktober 2020
Bitcoin is a million times better than gold, according to MicroStrategy’s CEO.
Michael Saylor, the CEO of the company that bought bitcoin for $425 million comes superlatives short on the digital currency.
Earlier this week, he announced that the company would retain the Crypto Revolt for at least 100 years. Saylor feels that you can never have enough bitcoin. „If you really understand, an investment of 1% of your portfolio is not enough.
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Bitcoin better than gold
In his interviews, Saylor often mentions that bitcoin is miles ahead of gold. According to the CEO of the tech company, this has everything to do with the difficulty adjustment of bitcoin. This is missing with gold.
When the price of bitcoin rises and less investment in equipment is made, more bitcoin is not suddenly found. It may be that blocks are temporarily found a bit faster, but after the difficulty adjustment that average automatically goes back to 10 minutes per block.
This mechanism ensures that the number of new bitcoin added per day remains predictable and at the same level. This is not the case with gold. If the price of gold rises and miners start investing more in mining gold, they will find more gold.
There is no mechanism for gold that makes it more difficult to find gold. According to Saylor this is the argument against gold and for bitcoin.
Bitcoin rises relative to gold
According to macro investor Raoul Pal it is interesting to keep an eye on the proportions between bitcoin and gold. The last few weeks gold is starting to outperform bitcoin.
If bitcoin breaks with gold, then the dollar and the stock markets are the following hurdles according to Pal. The break with gold and shares can be extra fuel for the rocket that now slowly resembles the rise.
It is also enormously bullish that prominent investors like Paul Tudor Jones are getting more and more involved in the debate. He said he has never seen a store of value with so much intellectual capital behind it. By which he refers to the enormous and still growing group of bitcoiners.