If you have been active in the crypto community for a while, I am pretty sure Michael Saylor is a name you must have heard. He is the CEO of Microstrategy and is one of the biggest supporters of Bitcoin. His company holds more than 120k Bitcoins which they have acquired in various dips throughout 2020 and 2021. Recently, Michael Saylor praised Bitcoin because of its scarcity, and at the same time, he calls Gold a commodity. According to him, the only scarce asset is Bitcoin.
About Bitcoin’s math
Bitcoin is programmed money, and it is limited to 21 million. New Bitcoins can be mined by powerful machines that validate blockchain transactions and get BTC as rewards. Every 4 years, the reward is reduced to half, and this makes the supply drop after halvings. At this point, around 19 million Bitcoins have been mined, and the last BTC will be mined by 2140. Due to its minimal supply, high demand, and increasing adoption, it is a very scarce asset.
A recent report showed that Bitcoin’s 60% supply is illiquid, showing that investors are holding long term. The simple demand vs. supply maths is what makes Bitcoin a valuable asset in today’s world. Then there is also the decentralization factor. While many can argue that BTC is still concentrated in a few hands and miners, it is still a lot more decentralized than anything out there.
Micahel’s take on Bitcoin and Gold
In a recent podcast, Micahel said all other assets could be created more, but Bitcoin can’t be. It is the only scarce thing that is known to us. Even in the case of Gold, that is the case. And therefore, Michael Saylor calls Gold a commodity and clubs it with real estate and similar assets. He further adds that he can create more real estate, cars, watches, Gold, and every other commodity we can think of but not BTC.
So, his take is simple. Since BTC cannot be created and there is only a limited number that will ever exist, it is an asset while Gold is different.
What are your thoughts as Michael Saylor calls Gold a commodity? And do you think that Bitcoin will be able to overtake Gold by market cap in the future? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.