MicroStrategy CEO: Bitcoin will 'overtake gold' in the coming months

The MicroStrategy chairman made the statement in an interview with CNBC on March 11, adding that Bitcoin not only outperformed gold but also outperformed all conventional assets, including real estate. and securities.

'Bitcoin is competing with gold. It will surpass gold'.

Outstanding property

Saylor said that, at the very least, Bitcoin should be considered 'digital gold' to describe its role as a store of value. However, Bitcoin has all the best attributes of gold and none of the shortcomings.

Saylor also commented on the fact that, unlike gold, Bitcoin can be transferred digitally.

'If users could move gold from New York to Tokyo in a few minutes then everyone would love it'.

Saylor noted that Bitcoin has an advantage over other assets, including equity, bonds, and real estate. Specifically, Bitcoin can be traded a million times faster than conventional assets and can be traded outside of standard trading hours, which is only 20% of the time each week.

'If you want to buy a house on a Saturday in Africa or want to buy a car on a Sunday morning, Bitcoin is the way to do it.'

Mr. Saylor reinforced this point by sharing that MicroStrategy bought the majority of $820 million worth of Bitcoin recently on Saturday, something that would not be possible with traditional financial assets.

ETF war

Bloomberg ETF analyst Eric Balchunas also made similar comments on March 11 about Bitcoin and gold. He said that spot Bitcoin ETFs are on track to surpass gold ETFs and it is no longer unrealistic to think that will happen anytime soon.

Spot Bitcoin ETFs have a total of $55 billion in assets under management (AUM) and have traded $110 billion since January, meaning they could surpass gold ETFs in a matter of months.

Data from the World Gold Council shows that gold ETFs have AUM worth $210 billion.

Mr. Saylor also commented on Bitcoin's growing presence in the broader financial market, suggesting that Bitcoin will shift capital away from risk assets and risk ETFs such as the SPDR S&P 500 ETF (SPY), currently is the largest ETF with $505 billion in AUM.

Michael Saylor also pointed to the fact that BlackRock began plans to add Bitcoin to its other funds less than three months after launching spot Bitcoin ETFs. This is considered a sign of a change in the psychology of traditional finance, as the value of Bitcoin is increasing.

Micah Soto

Update 04 April 2024