The CEO of MicroStrategy reveals why Bitcoin is a better investment than gold - FOGWHY

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Sunday, February 7, 2021

The CEO of MicroStrategy reveals why Bitcoin is a better investment than gold


 

Michael Saylor, CEO of MicroStrategy has revealed what pushed his company to secure its wealth by using Bitcoin instead of other assets that may have looked like more reasonable options like gold.


MicroStrategy is among the first traditional financial companies to invest in Bitcoin (BTC) and view it as a store of value, which led to an influx of institutional investments into Bitcoin thereafter during the end of last year.


Michael Saylor, CEO of MicroStrategy, admitted during his speech at Blockchain Finance Week that in February 2020, he was relatively ignorant of Bitcoin's potential, possibly dismissing the cryptocurrency as a kind of annoying cyber-digital cipher.


But his opinions and convictions changed, as Saylor confirmed that he saw Bitcoin as a store of wealth more than gold.


He stated the following:


When looking at the assets that should be directed to reduce the potential loss by about 15% of the shareholder value on its cash balance annually, "MicroStrategy" found that Bitcoin provided the best returns among a wide list of assets, such as:


Government debt, stocks, derivatives, real estate, and precious metals.


Saylor added by saying:


The gold returns do not look as convincing as Bitcoin.


So we found and eventually directed the cryptocurrency because at its core it helps create a digital world


Bitcoin is digital gold.


Saylor added:


If you were looking for a valuable cashless derivative store in an inflationary environment, then it stands to reason that you would settle for Bitcoin as digital gold.


Why isn't the crypto market volatility bothering MicroStrategy:

When asked whether Bitcoin's volatility is a concern, Saylor indicated that MicroStrategy's investment plan is to hold the cryptocurrency on a long-term basis.


Therefore, short-term volatility was not a concern for “MicroStrategy,” as its goal was not to trade bitcoin daily, but to hold bitcoin in the long term.


He told Saylor in this regard:


We've been investing for 10 years, and if you look at bitcoin over 10 years, it's not volatile at all, it's just going up.


Saylor explained that, in any case, for an asset to gain value, it must be subject to some fluctuations.


However, never investing in Bitcoin is riskier than holding a volatile asset.


Saylor added:


If we want to avoid volatility, we can keep the money.


But we would be 90% sure that we would lose 75% of our value over 10 years.


This is the price of stability.


Volatility is the price you pay for the value.


Currently, MicroStrategy has a total of 70,470 Bitcoins, which translates to more than $ 2.6 billion in Bitcoin's current value.


Bitcoin is the best store of value:

Many cryptocurrency bulls share the same "Saylor" sentiment about Bitcoin as an ideal hedge asset.


As Bitcoin's potential continues to grow and is revealed daily, many have taken it upon themselves to educate others about its value.


The well-known “Anthony Pompigliano” in the crypto arena stated:


Bitcoin really revealed who is open-minded.

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