In a recent CNBC interview on March 11, MicroStrategy’s executive chairman, Michael Saylor, boldly says Bitcoin will ‘eat gold’ in the coming months, as it establishes itself as the superior asset in various aspects.
Bitcoin’s Superiority Over Gold
In today’s news, Saylor says Bitcoin will ‘eat gold’ in the coming months. He emphasized that Bitcoin surpasses not only gold but also traditional assets like real estate and stocks. He urged the consideration of Bitcoin as “digital gold,” attributing its status as a store of value to its remarkable qualities, which he claimed far outweigh those of the precious metal.
According to Saylor, Bitcoin possesses all the positive attributes of gold without any of its drawbacks. A significant advantage highlighted was the digital transferability of Bitcoin, contrasting it with the logistical challenges of transporting gold globally. Saylor asserted, “If you could teleport gold from New York to Tokyo in a few minutes, people would like it.”
Bitcoin’s Speed and Accessibility
The MicroStrategy chair argued that Bitcoin outshines other assets, including equities, bonds, and real estate, due to its rapid trading capabilities. Bitcoin can be traded a million times faster than conventional assets and operates beyond standard trading hours, accounting for only 20% of the week. Saylor emphasized Bitcoin’s constant availability, making it a feasible option for transactions at any time, even on weekends.
Saylor supported his claims by revealing that MicroStrategy recently acquired the majority of its $820 million worth of Bitcoin holdings on a Saturday. This feat, he noted, would be impossible with traditional financial assets, showcasing Bitcoin’s flexibility and responsiveness.
On a parallel note, Bloomberg ETF analyst Eric Balchunas echoed similar sentiments on March 11, predicting that spot Bitcoin ETFs are on track to surpass gold ETFs. With a collective $55 billion in assets under management (AUM) and $110 billion traded since January, spot Bitcoin ETFs could overtake gold ETFs in a matter of months. Gold ETFs, according to World Gold Council data, currently have $210 billion in AUM.
Bitcoin’s Impact on Traditional Financial Markets
Saylor also touched upon Bitcoin’s increasing influence in the broader financial market. He suggested that Bitcoin would divert capital from risk assets and ETFs, such as the SPDR S&P 500 ETF (SPY), currently the largest ETF with $505 billion in AUM. Highlighting BlackRock’s initiation of plans to integrate Bitcoin exposure into its funds within three months of spot Bitcoin ETF launches, Saylor sees this as a clear indication of shifting sentiments and the growing recognition of Bitcoin’s value in traditional financial circles. As Bitcoin continues to assert its dominance, industry experts foresee a potential shift in the balance of power between the leading cryptocurrency and traditional assets like gold.
Bitcoin’s Superiority Examined
Saylor argues that Bitcoin, often dubbed “digital gold,” is a superior asset due to its unique qualities and that is why he says Bitcoin will ‘eat gold’ in the coming months. Unlike physical gold, Bitcoin can be swiftly transferred digitally, making it more accessible and adaptable to modern transaction needs. Saylor’s comparison of Bitcoin’s flexibility to teleporting gold globally sheds light on the practical advantages of the cryptocurrency.
Additionally, Saylor points out Bitcoin’s rapid trading capabilities, asserting that it can be traded a million times faster than traditional assets. This, coupled with its continuous availability beyond standard trading hours, positions Bitcoin as a more dynamic and efficient asset.
Impact on Traditional Financial Markets
The critical analysis extends to the broader financial landscape, where Saylor suggests that Bitcoin’s growing presence could divert capital from traditional assets like stocks and ETFs. The recent move by BlackRock to incorporate Bitcoin exposure into its funds underscores the changing sentiments within the financial sector.
While Saylor’s arguments highlight Bitcoin’s potential, it is crucial to acknowledge the volatility inherent in the cryptocurrency market. Because digital assets are unpredictable, investors should approach these predictions with caution.
