Bitcoin to replace gold this decade
With bitcoin hovering below $ 60,000, the cryptocurrency community has turned its attention to construction again instead of price. The Bitcoin bull Michael Saylor is an exception. The CEO of MicroStrategy, whose company has over 114,000 bitcoins on its balance sheet and has not finished buying, is looking to the long term and is more bullish than ever on the price of BTC.
Saylor talked to CNBC on bitcoin as a store of value asset and its long-term view of the BTC price. He gave a scenario where the price of bitcoin doubles every year until it returns gold at the end of the current decade.
From there, he expects it to “tip the money indices” as well as some bonds, real estate and stocks before emerging as a $ 100,000 billion asset class. At this point, bitcoin would represent 5-7% of the US economy, says Saylor, suggesting that there will be only a handful of fiat currencies left, including the US dollar, euro and CNY.
“By the end of the decade, it will have flipped gold, then it will flip currency indices, a little bit of bonds, a little bit of real estate, a little bit of stocks and will emerge in an asset class of 100,000. $ “, says @saylor to #bitcoin. “100x where he is right now.” pic.twitter.com/PIOBQ3wc0N
– Squawk Box (@SquawkCNBC) November 19, 2021
Saylor also believes that as the price of bitcoin increases, volatility will decrease.
When the price is much higher, the volatility will be much lower. #Bitcoin
– Michael Saylor⚡️ (@saylor) November 19, 2021
Bitcoin against gold
With inflation at its highest level in 30 years and not expected to drop anytime soon, store of value assets like bitcoin and gold are leading the way. Gold did what it was designed to do and rose slightly, currently priced at around $ 1,860. Bitcoin recently hit a new all-time high, but is currently experiencing a downward trend.
Saylor said there was a war for the title of “non-sovereign bearer store of value”, with bitcoin on one side against gold and silver on the other. Even if the market cap of gold exceeds that of bitcoin at $ 10,000 billion from $ 1,000 billion, bitcoin is winning and will continue to do so, according to the head of MicroStrategy. He highlighted the agile nature of digital gold as well as the speed at which it can be processed compared to gold bullion, not to mention the lower costs associated with the digital asset. Saylor predicted,
“It’s pretty clear, digital gold is going to replace gold this decade.”
The price of bitcoin has risen more than 120% since around mid-July.