Why is Bitcoin better than gold? Bitcoin or gold? “Bitcoin 50 times… | by Lukas Wiesflecker | Capital | June 2021
Bitcoin or gold? “Bitcoin is 50 times better,” according to Saylor
Time and time again, comparisons between gold and Bitcoin are created. Michael Saylor also made a comparison and explained why Bitcoin is better than gold.
The head of the software manufacturer MicroStrategy is known for praising Bitcoin as an investment. For example, his company itself has invested in Bitcoin. He said that as a result, Bitcoin has risen by 330%, while gold has only risen by 7% during the same period.
“So, as an inflation hedge, Bitcoin outperforms gold 50 times, so you can see Paul Tudor Jones and other early Bitcoin believers thinking,’Maybe it’s time to double or triple my investment Up.'”
Although the risks are high, he said that investment makes many investors happy. For example, the price of Bitcoin recently broke the $40,000 mark again in a short period of time. Other cryptocurrencies also rose.
Thaler used to keep a low profile on cryptocurrencies other than Bitcoin. However, now he explained that Ethereum and stablecoins also have their reasons for existence.
He said that behind Ethereum is a digital application that can dematerialize banks in the future. Therefore, there will definitely be a cryptocurrency market like Ethereum.
In the next few years, stablecoins may also become important. In his view, these will achieve the same effect that the country hopes to achieve by developing its own cryptocurrency. For example, cryptocurrencies like Tether are pegged to the U.S. dollar.
Over the years, whether to invest in Bitcoin or gold has been the thinking of more and more investors. Although Bitcoin and all other cryptocurrencies are subject to high volatility, precious metals are more stable here.
On the other hand, gold has a long history and has been considered the best way to hedge against inflation for centuries. Although the price of Bitcoin has risen from US$9,500 to the current US$39,200 in the past 12 months, the price of gold has risen from around US$1,730 to US$1,850 during the same period.
However, in terms of market value, gold is still clearly ahead. The current market value is about 10 trillion U.S. dollars, while the market value of Bitcoin is 730 billion U.S. dollars. At the same time, the total value of all cryptocurrencies reached 1.6 trillion U.S. dollars.
Many analysts are convinced that Bitcoin can also reach the market value of gold. However, it is currently difficult to compare. Especially because Bitcoin has only existed for more than a decade, it remains to be seen how the cryptocurrency market will develop, especially how certain countries like China will affect it. Nevertheless, Bitcoin has been able to prevail as an investment against inflation so far.