MicroStrategy executive chairman Michael Saylor predicted that Bitcoin (
$110,171.00 ) will “eat gold” in the coming months because it is a far superior asset in every way.
The MicroStrategy chair made the statement during a CNBC interview on March 11, where he added that Bitcoin ( $110,171.00 ) was not only superior to gold but all conventional assets, including real estate and stocks.
According to Saylor:
“ Bitcoin ( $110,171.00 ) is competing with gold. It’s going to eat it.”
Superior asset
Saylor said that, at the very least, Bitcoin ( $110,171.00 ) should be considered “digital gold” to describe its role as a store of value. However, he added that Bitcoin ( $110,171.00 ) has all the best attributes of gold and none of the defects.
Saylor also commented on the fact that Bitcoin ( $110,171.00 ) , unlike gold, can be transferred digitally. He said:
“If you could teleport gold from New York to Tokyo in a few minutes, people would like it.”
Saylor noted that Bitcoin ( $110,171.00 ) has key advantages over other assets, including equity, bonds, and real estate. Specifically, he said Bitcoin ( $110,171.00 ) can be traded one million times faster than conventional assets and can be traded outside of standard trading hours, which make up just 20% of each week.
Bitcoin ( $110,171.00 ) ’s constant availability extends to spending, he said, noting:
“If you want to buy a house on Saturday in Africa … if you want to buy a car on Sunday morning, [ Bitcoin ( $110,171.00 ) ] is the way to do it.”
Saylor further cemented the point by sharing that MicroStrategy bought most of the recent $820 million worth of Bitcoin ( $110,171.00 ) for its holdings on Saturday — something that would be impossible to do with traditional financial assets.
The ETF battle
Incidentally, Bloomberg ETF analyst Eric Balchunas made similar comments on March 11 regarding Bitcoin ( $110,171.00 ) and gold. He said that spot Bitcoin ( $110,171.00 ) ETFs are on track to overtake gold ETFs and its no longer unrealistic to think it will happen soon.
Spot Bitcoin ( $110,171.00 ) ETFs collectively have $55 billion of assets under management (AUM) and have traded $110 billion since January, meaning they could overtake gold ETFs in a matter of months.
Data from the World Gold Council suggests that gold ETFs have $210 billion in AUM.
Saylor also commented on Bitcoin ( $110,171.00 ) ’s growing presence in the broader financial market. He suggested that Bitcoin ( $110,171.00 ) will divert capital from risk assets and risk ETFs like the SPDR S&P 500 ETF (SPY) — currently the largest ETF with $505 billion in AUM.
He also pointed to the fact that BlackRock has initiated plans to add Bitcoin ( $110,171.00 ) exposure to its other funds less than three months after the launch of spot Bitcoin ( $110,171.00 ) ETFs as a sign of shifting sentiments and the growing value of Bitcoin ( $110,171.00 ) in traditional financial circles.
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