Gigachad Michael Saylor has been explaining his reasoning for why he chose to invest $425m of MicroStrategy’s liquid treasury into Bitcoin.
The MicroStrategy founder and CEO called Bitcoin ‘the best security and the most liquid security invented in the history of the world,’ when quizzed about why he chose Bitcoin over gold gold.
Saylor shook the world when he invested such a huge amount of public money into buying Bitcoin. And while speaking on the Stansberry Research show, the software expert was as bullish as ever.
Bitcoin Is Better Than Gold At Being Gold
The conversation was mostly a debate about why Saylor chose Bitcoin over gold as a store of value.
And when pressed on the Bitcoin vs gold reasoning, Saylor spelled out how human ingenuity when driven by financial incentives made Bitcoin a better choice than gold.
‘Bitcoin is an infinitely hard asset, whereas gold can be produced by humans given the right incentive.’
‘If you double the price of gold, you’re going to double the incentive for miners to produce gold, and if gold goes up by a factor of ten, human beings have a way of putting capital into mining and ingenuity and they’ll invent better ways to mine it, and at some point they’ll melt down their jewellery or find other gold.’
‘If Bitcoin goes up by a factor of ten, no amount of investment in Bitcoin mining can produce more Bitcoin. If I put $100 billion into gold mining, I will produce more gold. … If I put $100 billion into Bitcoin mining, I will produce no more Bitcoin, I will just produce more security.’
‘All you’re doing is making the network better and safer.’
The fact that gold miners being incentivized to mine more gold as the value rises hasn’t been brought up before in a gold vs Bitcoin debate.
Added to the fact that Bitcoin production halves every four years, there’s no debate needed to determine which asset is harder.
10% Inflation Every Year Will Drive Up The Value Of Bitcoin
Saylor, who has undoubtedly lost all confidence in the dollar believes Bitcoin being ‘digital gold’ will see it adopted by bigger corporations and even central banks.
‘Bitcoin is going to go up as more people adopt it as their treasury reserve asset,’ said Saylor. ‘And as the inflation rates of all the fiat currencies it trades in increases, and I’m talking about asset inflation rates like the 10%, I’m not talking about CPI inflation rates […] will drive it up.’
‘Bitcoin is digital gold,’ said Saylor. ‘It’s the dematerialization of gold, in the same way that Apple dematerialized your camera, and Facebook dematerialized your photos, and Amazon dematerialized your library.’
Saylor called Bitcoin ‘the best security and the most liquid security invented in the history of the world,’ explaining how you couldn’t market any forex trade, any gold, or security on a Saturday afternoon, but ‘with Bitcoin you can get a bid on it in any currency, any hour of the day, 365 days a year.’
Bitcoin Is The Best Asset Ever Invented In the History of The World
Bitcoin is still being defined by different sects of the financial world. But whether it’s ultimately labelled a currency, commodity, security or digital whatever, it doesn’t really matter.
Bitcoin is Bitcoin. Its digital gold comparison is without question, and as Saylor eloquently points out, its properties make it much better at being gold than gold does itself.
Bitcoin is a software program, its value comes from the miners mining it and the global interest in storing value in it.
And as both the mining industry and adoption grow, Bitcoin simply becomes more secure and more liquid.
You can buy Bitcoin any time any day, you can program on it, and you can send it anywhere at any time and nobody can stop you.
Michael Saylor is a true Bitcoiner, which central bank will be first to join him?
Author: Tommy Limpitlaw
Bitcoin FAQs
There are many reputable Bitcoin exchanges operating in Great Britain. However, the most recommended exchanges are Kraken or BlockFi. Or you can buy Bitcoin from Bitcoin marketplaces, such as LocalBitcoins or Paxful.
All of these exchanges and marketplaces are global with high liquidity and excellent customer service. Feel free to read the reviews of each one.
