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MicroStrategy investment in gold vs. in Bitcoin

A little over a year ago, Bitcoin was still recovering from one of its worst declines in the past year. Simultaneously, the first cryptocurrency was about to enter a new era of popularity, which would propel it to new all-time highs in the coming months.

From a yearly low of roughly $3,700 per BTC in 2020 to $10,000 in September 2020, the price has risen to $51,670 at the time of writing. With a 478 per cent gain since mid-last year, Bitcoin has demonstrated why it is one of the best-performing investments of the decade.

MicroStrategy was buying its first coins to integrate BTC into its treasury around this period, between March and June 2020. In a recent statement on his Twitter account, the company’s CEO Michael Saylor praised the move.

The international economy, according to Saylor, is headed for inflation as a result of the major central banks’ monetary policies. As a result, he chose to invest a significant portion of the company’s value in a value store.

Because of its qualities, the executive chose Bitcoin over gold when determining which currency to use. Saylor is a well-known Bitcoin bull, and its gamble has so far paid out.

MicroStrategy’s approximately $2 billion original investment would have lost 80% of its value in a year if it had invested in Gold instead of Bitcoin, as shown in the graphic below. It would have lost 21% of its value in the last 30 days.

MicroStrategy has over 100,000 BTC, or 0.5 per cent of the entire supply, according to data from BitcoinTreasuries.org. This investment has increased by 376.34 per cent in a year, as seen above.

Because of its Bitcoin investment, MicroStrategy outperforms gold.

Ecoinometrics’ additional data suggests a link between MicroStrategy’s (MSRT) stock performance and the price of Bitcoin. The company’s stock has risen 428 per cent since the start of its BTC treasury programme.

Bitcoin and MicroStrategy have outperformed the NASDAQ and the SP500, two of the most major stock indexes. Since the software company revealed its BTC treasury programme, the former has a 68.3 per cent profit, while the latter has a 54.8 per cent profit.

Many firms, banks, and hedge funds have turned to MicroStrategy as a BTC price proxy in order to get legal exposure to cryptocurrency. According to Bitcoinist, major investors in the company include BlackRock, Capital Group, Morgan Stanley, The Vanguard Group, and others.

Many in the crypto community have been suspicious of MicroStrategy and its CEO. When the chance occurs, many expect the company to “dump” their BTC into the market. Saylor has responded by saying that he intends to keep Bitcoin “forever.”

Without a doubt, the company sparked a trend that has propelled BTC to new price and adoption highs. El Salvador will formally adopt the Bitcoin Standard tomorrow. The country has now been formally added to the list of BTC-holding corporations, which includes MicroStrategy, Tesla, Square, and others.

 

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