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Bitcoin is going to ‘demonetize’ gold gradually, says MicroStrategy’s Saylor

WikiBit 2022-08-15 11:24

Abstract:With the rise of Bitcoin (BTC), some supporters believe that the cryptocurrency may someday supplant gold as a store of value and replace the precious metal. Despite the current market crisis, prominent crypto players have maintained that the prediction of Bitcoin dethroning gold is still on track.

  In particular, in an interview with Stansberry Research on August 13, outgoing MicroStrategy (NASDAQ: MSTR) CEO Michael Saylor indicated that the rise of Bitcoin would certainly lead to the demonization of gold.

  However, Saylor admitted that Bitcoin's journey to replacing gold would be marked by highs and lows. Interestingly, Saylor stated that, unlike gold, Bitcoin has a stronger probability of being adopted as a currency by more governments.

  “Conventional skeptics and mainstream experts don't grasp the crypto economy, Bitcoin, or volatility...> ”Bitcoin will progressively demonetize gold over time; gold will return to its utilitarian value, but it will not be adopted as money in the twenty-first century, Saylor said.

  Managing Bitcoins volatility

  Concerning Bitcoin's volatility, Saylor stated that long-term investors need not be concerned, noting that price swings are part of the asset's maturation journey. He claimed that Bitcoin has faced criticism for its volatility as a result of investors looking to earn money in the short term.

  Saylor claimed in this sentence that MicroStragey's Bitcoin investing strategy was guided by a long-term strategy. Notably, since entering the Bitcoin market in August 2020, the company has amassed over 200 BTC.

  Saylor, who was central to the strategy, has come under fire after the company went bankrupt. MSTR reported quarterly sales of $122.1 million in Q2 2002, compared to projections of $126 million.

  In addition, the corporation lost $918.1 million, with $917.8 million linked to its Bitcoin holdings.

  Bitcoin has likely bottomed

  Saylor also argued that the recent increases in the crypto sector show that Bitcoin has bottomed. Notably, as of press time, Bitcoin was trading around $24,500, up nearly 3% in the previous 24 hours.

  “The market appears to have bottomed,” he said, “where its fundamentals are emerging as institutional investment grade assets, embraced by regulators, legislators, and large-scale investors.”

  It is worth noting that, following a difficult first half of the year, Bitcoin and Ethereum (ETH) have led the crypto market in a short-term rally.

  As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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