Learning from what MicroStrategy CEO Explains about Bitcoin

[Charles-Tim]

This should be the topic: MicroStrategy CEO Explains Why Bitcoin Is ‘a Million Times Better’ Than ‘Antiquated’ Gold

I believe some people in the world have known how fiats are subjected to inflation, and how it is not competitive with bitcoin in any way. Also, people have known how bitcoin could be a better asset compared to gold, I could not get this clearer before, but this news opens my insight to some possible future occurrence that could ensued into significant price dump of gold.
Bitcoin pivot
Convinced the dollar was no place for MicroStrategy’s excess capital, Saylor said he and his executives began trawling around for a “tangible” asset alternative. “We had to cycle through real estate, bonds, equity, precious metal, derivatives or crypto,” Saylor said. Of that group, precious metals, particularly gold, has long stood as an enticing store of value, a scarce, safe-haven asset recognized around the world. Not to Saylor. For starters, he balked at the notion that gold is scarce. “Gold is the least abundant of the commodities, but you can still produce gold,” he said. But he’s also acutely concerned with what he describes as the clashing interests of gold miners and gold bugs. One is trying to capitalize on the market by mining replenishable supply while the other is hoping that access remains scarce, pushing prices up.

“The gold miners are the enemies of the gold holders,” said Saylor. “The gold miners are trying to destroy your value, right? They’re not trying to help you.”  He predicts an even bigger problem with the gold market: Investors fleeing to bitcoin. Even if they don’t know it yet, Saylor thinks gold investors will eagerly dump the commodity for what he calls a superior store of value. It’s not an if. It’s a when.  “Not a good bet to bet against ingenuity and assume that people will be lazy and ignorant for the next decade, because it’s not likely,” Saylor said.
https://www.coindesk.com/microstrategy-ceo-bitcoin-better-than-antiquated-gold
In my opinion, this man is very right, people are getting knowledgeable compared to the past era, people will not be ignorant like before, gold will still be mined because it still has large deposit in the world, the supply by gold miners is what could make its price not be increasing the way it should be, this could be the exact point that can result to people leaving gold for bitcoin. Bitcoin, will eventually be a scarce asset, unlike gold, only 21 million bitcoin in total supply, and in a way that the supply is reducing and at one point will end, and there will be no bitcoin supply again. With how bitcoin is, people will embrace it more and more, the marketcap will increase, thereby the price will increase, thereby people leaving gold and buying bitcoin and this could lead to drop in gold price, even if the price do not drop, there is still possibilities the price of gold will not be like before. This is not the first news I am reading this, but I gained more from the news that gold holders may eventually leave gold for bitcoin and this could result to gold price being dumped.

[jackg]

Yeah gold seems kinda overvalued too when considered against platinum (which is even better for industrial processes requiring gold).

I think people with wealth use gold for a tiny portion of their portfolios and instead of what he suggests, people might stock up both as a hedge and use 5% of assets for each (for example) so we could still get a high demand for that. However its also possible things like gold and diamond could be brought back from space missions soon (especially if private entities or Eastern governments plan more missions to space to inspect asteroids for example).

[ReiMomo]

It is true that gold may somehow have a lesser value in the future because of its abundance while bitcoin has limited numbers to be mined.

Due to pandemic where people starting to be digital and prefers online transaction and technology can suffice this demand through bitcoins framework then global adoption will come in the least expected date, with this the law of supply and demand will have a huge impact on the bitcoin's value.

However, reality bites because it remains uncertain when and how it will become a reality.

[Harlot]

Maybe Saylor is too excited with his portfolio that is why he is saying these kinds of things and that is where he is wrong. If Bitcoin's price goes up I don't think it Gold will be affected in a negative way, why? Because Saylor even said Bitcoin and Gold are not so similar so why will it take market shares away from Bitcoin. Gold will always be the choice for the most conservative of investors out there and I don't think they will switch their capital to a volatile asset because its jumping up high. We are talking about banks, government funds, and federal reserves out there to suddenly jump in to Bitcoin it will be bad for their economy.

Quoting my reply from a related topic in the press release. I don't think we have to say on whose better on whose not since Gold and Bitcoin doesn't cater to the same kind of investor. Remember that investors can be conservative and some can be risk takers and people who are conservatives tend to go to a much more stable asset which we all know Gold is one of them. Them being on different asset classes will just make them not affect each other.

[Charles-Tim]

...

If we can predict the value of bitcoin very well, there was a time bitcoin was much volatile than now, but bitcoin is getting stronger with the marketcap it is accumulating, bitcoin could be a volatile currency but that will be for now in such a way it  can still decrease, but if we check and analyze about bitcoin very well, we can noticed that bitcoin will be getting stronger all the time. $20000 was the all time all for bitcoin, but very soon it will break new all time high.

There will be a time the world will really depend on bitcoin because of its steady increase that will still occur, there will be a time when the remaining supply of bitcoin that will be mined will be very little, there will be a time when all bitcoin will be mined, people will be knowing more about bitcoin, more people will be getting educated and getting to know the value of bitcoin and why it is better than fiats and commodities like gold that will still have continuous supplies.

The more the marketcap bitcoin will be having, see bitcoin getting stronger because more people will introduce it to friends, families and business patners. With that by then, bitcoin price will just be increasing the more, even if its price decrease, it will later increase more than the decrease in such a way people will want to invest in it and use it.

I do not think the man is wrong, although we do not know the future, but I hope it is clear that if there is no bitcoin, more people would have invested in gold, but with bitcoin, some gold glory is being taken, and very possible more people will turn to bitcoin, and later affecting the price of gold, although, it could take a long time. I am predicting people turning more to bitcoin investing and trading in the future.

[Tushar Ramani]

...

If we can predict the value of bitcoin very well, there was a time bitcoin was much volatile than now, but bitcoin is getting stronger with the marketcap it is accumulating, bitcoin could be a volatile currency but that will be for now in such a way it  can still decrease, but if we check and analyze about bitcoin very well, we can noticed that bitcoin will be getting stronger all the time. $20000 was the all time all for bitcoin, but very soon it will break new all time high.

There will be a time the world will really depend on bitcoin because of its steady increase that will still occur, there will be a time when the remaining supply of bitcoin that will be mined will be very little, there will be a time when all bitcoin will be mined, people will be knowing more about bitcoin, more people will be getting educated and getting to know the value of bitcoin and why it is better than fiats and commodities like gold that will still have continuous supplies.

The more the marketcap bitcoin will be having, see bitcoin getting stronger because more people will introduce it to friends, families and business patners. With that by then, bitcoin price will just be increasing the more, even if its price decrease, it will later increase more than the decrease in such a way people will want to invest in it and use it.

I do not think the man is wrong, although we do not know the future, but I hope it is clear that if there is no bitcoin, more people would have invested in gold, but with bitcoin, some gold glory is being taken, and very possible more people will turn to bitcoin, and later affecting the price of gold, although, it could take a long time. I am predicting people turning more to bitcoin investing and trading in the future.

I have told similar to this to a couple of friends. Leave them aside, no one gives a dame where I live. People earning solid don't know where to invest and they just put money in the traditional stock market without any kind of knowledge. 5-10% of the gain is a whole world to them, I experienced. Fun fact: I have got friends working at Larsen & Toubro (dream of any engineer here) and 99% of employees of L&T trades on the stock market. They are handsomely paid, educated but inclined to live in the world of innovations. So, the point is such a highly educated group of people don't even try to understand Bitcoin, imagine the time it will take for real adoption. Government schemes are also directing them towards lubricative no-risk schemes where one gets a 5% fixed yield per anum on gold bonds, kept for 8 years, at the strike rate.

[Ryker1]

Well, I am positive that what Saylor said will happen in the future for there are a lot of things that had been valued before but because it turns to be abundant nowadays the value decreases as well, -- same as with the gold that can be mined continually then it's valued may decrease in the mere future. Technology and environment should assent to each other then people may turn to look for a better alternative to cope up with either progress or survival in the environment. However, when and how people will embrace these changes remain uncertain.

[Darker45]

Saylor is definitely right that despite the scarcity of gold, we are still producing it on a daily basis. We have always been told that gold is scare and yet for thousands and thousands of years we are still mining it. Until now. It is scarce because it is hard and costly to extract but it seems to be unlimited in supply, especially now that the prospect of extraterrestrial gold mining is becoming more possible than ever. Whereas Bitcoin's supply is fixed.

However, it is equally true that despite the thousands of years of unceasing gold production, it hasn't lost its value. With this, I don't think Bitcoin will drain gold dry of its investors, much less value.

[Harlot]

...

but I hope it is clear that if there is no bitcoin, more people would have invested in gold, but with bitcoin, some gold glory is being taken, and very possible more people will turn to bitcoin, and later affecting the price of gold, although, it could take a long time. I am predicting people turning more to bitcoin investing and trading in the future.

I beg to disagree with you since like what I said there are different kinds of asset classes and this alone separates the people who will be interested in investing in these kinds of assets since there are investors who are very conservative about their capital and there are investors who wants to take all the risks for their capital. If Bitcoin doesn't exists it doesn't mean all the attention will still be pointed out to Gold or any precious metals out there since there are different assets that have more chance of increasing in value as compared to Gold which is more likely stable, people will most likely head to the stock market and pick emerging stocks if they want companies with the most potential.