25.10.2020 | 18:38
Bitcoin is a million times better than gold, according to MicroStrategy’s CEO. Michael Saylor, the CEO of the company that bought bitcoin for $425 million is superlative over the digital currency.
Earlier this week, he announced that the company would Bitcoin Trader retain the bitcoin for at least 100 years. Saylor feels that you can never have enough bitcoin. „If you really understand, an investment of 1% of your portfolio is not enough“.
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Bitcoin better than gold
In his interviews Saylor often mentions that bitcoin is miles ahead of gold. According to the CEO of the tech company, this has everything to do with the difficulty adjustment of bitcoin. This is missing with gold.
If the price of bitcoin rises and less money is invested in equipment, more bitcoin is not suddenly found. It may be that blocks are temporarily found a bit faster, but after the difficulty adjustment that average automatically goes back to 10 minutes per block.
This mechanism ensures that the number of new bitcoin added per day remains predictable and at the same level. This is not the case with gold. If the price of gold rises and miners start to invest more in mining gold, they will find more gold.
There is no mechanism for gold that makes it more difficult to find gold. According to Saylor, that is the argument against gold and for bitcoin.
Bitcoin rises in relation to gold
According to macro investor Raoul Pal, it is interesting to keep an eye on the proportions between bitcoin and gold. In recent weeks, gold has started to outperform bitcoin.
If bitcoin breaks with gold, then according to Pal, the dollar and the stock markets are the next hurdles. The break with gold and shares can be extra fuel for the rocket that now slowly resembles the rise.
Furthermore, it is enormously bullish that prominent investors such as Paul Tudor Jones are also getting more and more involved in the debate. He indicated that he has never seen a store of value behind which there is so much intellectual capital. By which he refers to the enormous and still growing group of bitcoiners.