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”It would have been a multi-billion-dollar error if I had picked Gold”, says Michael Saylor

MicroStrategy CEO Michael Saylor had told CNBC that a variety of cryptocurrencies, not only bitcoin, have a bright future. Saylor, one of the most outspoken proponents of bitcoin, has enhanced the prominence of his enterprise software company in the last year by significantly investing in the world’s largest cryptocurrency by market capitalization.

In a tweet posted on Sunday, Michael J. Saylor said: ”It would have been a multi-billion-dollar error if I had picked #Gold instead of #Bitcoin last year. If you don’t pick the appropriate solution, you won’t be able to diagnose the problem.”

Who is Michael J. Saylor?

American business executive Michael J. Saylor is the founder of MicroStrategy, which offers cloud-based business analytics, mobile software, and mobile marketing services. Saylor revealed his desire to purchase Bitcoin, gold, or other alternative assets instead of storing cash on MicroStrategy’s quarterly earnings conference call in July 2020. MicroStrategy bought 21,454 Bitcoin with $250 million from its cash reserve the next month. 

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In September 2020, MicroStrategy contributed $175 million to their Bitcoin holdings, followed by another $50 million in early December 2020. On December 11, 2020, MicroStrategy announced that it had sold $650 million in convertible senior notes, taking on debt to increase its Bitcoin holdings to over $1 billion. In a press release released on December 21, 2020, MicroStrategy stated that it had purchased 70,470 bitcoins for $1.125 billion, or $15,964 per bitcoin. 90,531 bitcoins were purchased for $2.171 billion on February 24, 2021, at an average price of $23,985 per bitcoin.

Gold vs Bitcoin price analysis

Bitcoin began 2021 with a new all-time high above $34,000 (£24,850, €27,724), and analysts are optimistic about the cryptocurrency’s continued good performance in the coming year and beyond. The value of Bitcoin rose threefold in 2020, demonstrating a consistent rise despite the stock market’s severe impact from Covid-19. With the US dollar declining, Bitcoin and other famous cryptocurrencies are gaining popularity as traditional investors seek to diversify their portfolios and improve their returns. 

During the coronavirus outbreak in March of 2020, Bitcoin lost 25% of its value. It did, however, recover and break the historic level of $20,000 at the end of November. The cryptocurrency quickly demonstrated that the sky was the limit, gaining 50% in December alone. Gold began 2021 at roughly $1,950, just 5% below the all-time high of $2,075 reached in August 2020.

Michael J. Saylor said in an interview on “Fast Money” that different cryptocurrencies serve different objectives, but that newbies to the digital asset world may take some time to grasp those distinctions. According to Saylor, bitcoin is “digital property” and a store of value, whereas ether and the Ethereum blockchain are attempting to disrupt traditional finance.

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Also, read Cryptocurrencies prices today: XRP, Dogecoin, Polkadot all up 6%

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