The institutional interest of Bitcoin has hit a different height in 2021. One of the companies that have believed in the vision of Bitcoin is MicroStrategy. The company holds more than 92,000 BTC. The CEO of the Company, Michael Saylor has boldly declared that Bitcoin is better than gold.
— CNBC’s Fast Money (@CNBCFastMoney) June 15, 2021
His company recently revealed its decision to buy more Bitcoin by raising money through sales of over $1 billion worth of its Class A common stocks.
When justifying the decision, he said Bitcoin is the best asset to buy in a period of increasing inflation. He added that this is the time to triple his allocation.
I think in the past 12 months, we have had micro strategies for inflation, and I think we are seeing it now. I think investors are seeing that bitcoin is up by 330 percent and gold is up 7 percent in that period. So, bitcoin is outperforming gold as an inflation hedge by a factor of 50. So, you are seeing Paul Tudor Jones and other early bitcoin believers thinking, ‘maybe it’s time for me to double or triple my allocation.
According to him, Bitcoin is 50 times better than gold, and it is surprising that investors are not increasing their allocation by a factor of 10.
There is a place for every asset in the ecosystem – MicroStrategy CEO
The MicroStrategy CEO is widely known as a BTC maximalist who hardly discusses other digital currencies. However, he seems to have developed an interest in other cryptos. According to him, there is a place for Ethereum blockchain and its native currency just as the rest of the cryptocurrencies have a place and serve different purposes in the ecosystem. He believes that the existing stablecoins also have a spot in the ecosystem as they play a similar role as the upcoming Central Bank Digital Currency (CBDC).
You’re going to want to build your buildings on a solid footing of granite, so bitcoin is made to last forever — high integrity, very durable. Ethereum is trying to dematerialize exchanges and the financial establishment.
Though there is a place for every asset, it might take time for newcomers to the crypto space to recognize the distinctions.
MicroStrategy is said to have made its first Bitcoin purchase in August using the money on its balance sheet. Since this period, two convertible debt offerings have been completed to raise capital to finance additional Bitcoin purchases. Saylor has been calling on other companies to invest in Bitcoin. According to him, Bitcoin will hit a market cap of $100 trillion in the future.
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