In a world where digital currencies are rapidly gaining traction, Michael Saylor, Executive Chairman and Co- Founder of MicroStrategy, firmly thinks that Bitcoin (BTC) is poised to eclipse gold as a leading asset.”
In a recent interview with Kitco News at the Bitcoin (BTC) 2023 conference in Miami, Saylor shared his views on future of the Bitcoin, gold, and banking.
Saylor presents a highly positive tendency stance on Bitcoin, suggesting it will outperform gold, leading to a complete transition of gold investors to Bitcoin. He bases his argument on the digital nature of Bitcoin, viewing it as the “digital synthetic successor to gold,” with quicker appreciation prices, lower costs of custody, and no counterparty dangers. He likewise outlines the decentralized nature of BTC’s blockchain tech network, which offers protection against inflation and a store of value owing to its limited supply cap.
MicroStrategy’s financing in Bitcoin (BTC) since August 2020 has proven successful, with a 140 percent boost in the asset’s value, significantly outperforming other indexes and commodities. Saylor contrasts this performance with gold, which he sees as a failure owing to its slow technological progression, centralizing tendency, high holding costs, and constant debasement by gold miners.
Saylor, describing himself as a “ Bitcoin (BTC) realist,” predicts that future of the Bitcoin (BTC) will involve large institutions, corporations, and churches, indicating the need for custodial and banking infrastructure for Bitcoin. He describes that owing to regulatory requirements, it’s not feasible for corporate leaders to self-custody Bitcoin.
The interview likewise touched on the topic of bank failures, which Saylor views as political decisions rather than economic inevitabilities. He notes that that politicians can choose to facilitate failing banks or allow them to collapse, thereby affecting creditors and equity-holders. He cites the past few failures of Silvergate, Silicon Valley Bank, Signature, and 1st Republic Bank as examples, keeping in mind that the federal Government and Federal Reserve bailed out depositors while the banks were allowed to fail.
Saylor ended with a cautionary note on banking, advising against keeping money in weak banks or banks located in countries with weak currencies. Regardless of this, he expressed confidence in United States deposits but showed skepticism towards the securities of smaller banks.