Michael Saylor: “Bitcoin Is The Harder Asset Than Gold”

Michael Saylor, whose company invested $425 million in Bitcoin, says Bitcoin is superior to gold:

Bitcoin Will Outperform Gold by Every Metric, Says CEO Who Just Poured $425 Million Into BTC

“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. On the other hand, Bitcoin is exponentially going to infinity stock to flow. There’s never going to be more than 21 million Bitcoin.

So 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.”

Saylor says that with every other commodity, a rise in price means a rise in incentive to produce it, which in turn balances out the price by expanding the supply. Bitcoin, however, doesn’t face the same conundrum.

“If you double the price of gold, you’re going to double the incentive of miners to produce gold, and if gold goes up by a factor of 10, 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 jewelry or they’ll find other gold. On the other hand, if Bitcoin goes up by a factor of 10, no amount of investment in Bitcoin mining can produce more Bitcoin.”

Full article here: https://dailyhodl.com/2020/10/05/bitcoin-will-outperform-gold-by-every-metric-says-ceo-who-invested-425-million-into-btc/

 

Master Asked on October 5, 2020 in Bitcoin.
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