摘要: MicroStrategy CEO Michael Saylor says that Bitcoin is digital gold and explains his choice in diversifying his company’s investment portfolio with the mainstream cryptocurrency over gold.

 

 

Microstrategy acquires $425M worth of BTC

In an interview with Stansberry Research, the chief executive officer of the multibillion-dollar business intelligence firm broached the subject of Bitcoin (BTC), gold, and alternative asset classes. He explained that with the Federal Reserve’s plans to continue pushing inflation above 2%, he felt as if MicroStrategy’s investments were sitting on “a $500 million melting ice cube,” with the depreciation of the US dollar.

This drove him to secure Microstrategy’s treasury reserve by purchasing $425 million worth of Bitcoin. The bold move made headlines everywhere as MicroStrategy is the first public company to invest most of its reserve monetary supply in BTC.

Bitcoin is scarcer than gold

When comparing Bitcoin to gold, Saylor explained that though he did consider gold as a hedge initially, the fact that its supply was never-ending, with miners producing 2% more every year, was less appealing. Since gold’s supply is not fixed, it is not as good a hedge against inflation as Bitcoin.

With gold, its price will go up with increased demand, but as it does, so will the incentive for mining and investing in it. With the incentive to mine more gold, this will in turn increase the metal’s supply, and it will inevitably lead to a price drop.

However, with Bitcoin, there will only be 21 million, and the scarcity of the crypto asset is enough to drive up its price. As there is no way to generate more BTC, the cryptocurrency asset was “a harder asset than gold.”

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詳見全文Full Text: blockchain.news

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