Bitcoin Vs. Gold: Can BTC Outperform The Precious Metal?
The crypto market looks really bloody today, with most of the digital assets trading in the red.
Bitcoin is trading in the green and, at the moment of writing this article, the digital asset is priced at $10,634.86.
Bitcoin vs. gold
Bitcoin has been seen as a safe haven, just like gold in 2020, and the coin gained more popularity among traders.
It’s been revealed that the CEO of the publicly traded business intelligence company that invested $425 million in BTC said that Bitcoin is a superior asset to gold.
Michael Saylor, who is the co-founder and head of MicroStrategy, explained in an interview with Stansberry Research the reasons for which Bitcoin will outperform gold in the long-term.
“I considered gold, and then I started studying the two, and then I realized that gold miners are going to produce about 2% more gold every year… Let’s just say in the best of the world for a 100 years we produce 2% more gold, that means $100 million will be debased down to $12.5 million in 100 years,” he said.
Bitcoin is exponentially going to infinity stock to flow
He went on and said that “On the other hand, Bitcoin is exponentially going to infinity stock to flow. There’s never going to be more than 21 million Bitcoin.”
He continued and explained that “you’re really talking about, at most, diluting $100 million of Bitcoin by 10 million over the hundred years. Given the fact that Bitcoin is an infinitely hard asset, whereas gold can be produced by human beings given enough incentive, I realized that over the long term, Bitcoin is the harder asset than gold.”
He also pointed out the fact that with every other commodity, a rise in price means that there’s a rise in incentive to produce it – this balances out the price by expanding the supply. This obviously will not happen to Bitcoin.
Check out the original post by the Daily Hodl in order to learn what more he had to say.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.