In A Bull Case For Bitcoin There Is $250 Trillion In Assets Looking For Ideal Store Of Value
Bitcoin is being viewed as an ideal store of value. More than stocks, and gold, it is a promising digital gold. Learn all about it here in a detailed report.
According To Microstrategy
Making a strong bull case for bitcoin is the CEO of Nasdaq-listed billion-dollar company Microstrategy. Bitcoin is a better store of value than gold or tech stocks so that a lot of that monetary energy is going to flow from the asset ocean into the crypto pond as he says there is a $250 trillion ocean of assets looking for the ideal store a value right now.
In A First, Here We Compare Bitcoin To Investing Early In Apple, Google, Facebook, As Well As Amazon
Microstrategy CEO Michael Saylor outlined a highly bullish case for bitcoin’s price in a webcast with Hedgeye CEO Keith McCullough aired last week. As its primary reserve asset, the Nasdaq listed Microstrategy recently invested $425 million in bitcoin.
Saying that he has always been a big tech investor as Saylor began explaining that:
Figuring out the thing that’s going to eat the world is the thing about technology. Own it, hold it, and wait if you are right. Emphasising repeatedly that it does not matter when you bought those tech stocks, the CEO gave the example of Apple, Google, Amazon, and Facebook. If you had bought Google, Apple, Amazon, or Facebook at any point between 2010 and 2020, he thinks it’s impossible to have lost the money at any point for the decade as the investment mistake would be trying to time the market on those things as the truth of the matter is.
These bitcoiners have figured out something that is really a thing of beauty and extraordinary value as bitcoin is the first software network in the history of the world that can pull monetary energy as the Microstrategy CEO adds. On a network, they are pulling pure monetary energy.
He further elaborated that:
It could sit there for a decade like in a battery if he takes $100 million and puts it into bitcoin. It is possible that it won’t bleed out. They have never in the history of the world figured that out as you are not losing 2% to 4% a year as he can put it in the palm of his hand and move it around the planet for a few dollars in a few minutes.
Bitcoin Is Not So Volatile
Its volatility is one classic objection investors have to invest in bitcoin. Saylor said he has been looking a the volatility of different assets over the last three, four, and five months speaking on the subject. It was explained that he looked at 30-year Treasuries, 10-year Treasuries, the NASDAQ, the Russell 2000, gold, silver, Apple, Amazon, Facebook, Google, and many more. Further, Saylor concluded that after comparing their volatility to bitcoin,
On every single day, at least half of those assets are more volatile than bitcoin as his unscientific view is. He has seen 80% to 90% of them to be more volatile than bitcoin as on a lot of volatile days.
He thinks there is a historic narrative/belief. It's not looking that volatile to him over the past three months as people think they know this is volatile in fact. He doesn’t think that it’s going to have the same characteristics of volatility that it had over the last decade as he thinks over the next decade.
Hereby we take the first step to proceed as well as discussing how investors are using the Apple’s stock as their store of value is the Microstrategy CEO. Since its deflationary, people are literally using Apple’s stock of value. They are desperate to flee from the currency as Apple is buying it back and they think Apple is not going anywhere. For the past three months, however, he pointed out that Apple is more volatile than bitcoin.
Bitcoin Comes To Be The Better Store Of Value More Than Apple’s Stock Or Gold
Gold is still investors’ favourite store of value besides Apple’s stock.
Neither are as good as bitcoin as a store of value as Saylor explained
It is not scarce when it comes to the truth of Apple’s stock. They have got regulatory risk, competitive risk, and execution risk a lot of moving parts that’s why they are not good over the long term as he detailed, the executive team can and will eventually print more and in case that doesn’t dilute.
Over 100 years you lose 88% of your purchasing power in case you put $100 million into gold and the gold miners print 2% to 3% more a year let’s say 2% more as he said about gold.
As there was no alternative, the CEO explained that these stores of value worked in the past. Whereas now, things have changed. He declared that you have digital gold as in the year 2020 you have a choice. Here you observe they cannot make any more. This is because bitcoin miners come to be the friends of bitcoin owners. They don’t come as the enemy of bitcoin owners. You will lose 85% of it under the best case if you put it in gold as he explained that to store $100 million for 100 years. He thereafter claims that in case you lose it, it is all because the bank will fail, as the country will fail or as somebody will seize it under the most likely cause.
As the best solution was bitcoin presented where Saylor says for the first time in human history you can take all of your wealth and your life force as the reason for what the bitcoin maximalists are now passionate and religious about all of this. You can always put it into an asset. There is an option to keep the keys with you. Also, there can be custody of your million dollars and your hundred thousand dollars. There are no governments, or banks to take it away from you. If you have hopes and aspirations for our family, for your religion, for your life, then there is the power to achieve those hopes and aspiration without asking the permission of a bank or government or a politician as there is nobody to tell you that you can’t own your life force.
Functioning as stores of value, including gold, technology stocks, and bonds, the Microstrategy CEO then spoke about the trillions of dollars currently in alternative assets.
He then proclaimed that
It comes with a $250 trillion ocean of assets. Right now they are looking for the ideal store of value.
He emphasised that maintaining that the bitcoin is a better store of value other than assets he previously described, he was saying:
Bitcoin comes as digital gold. It comes to be better gold than gold with a better store of value than big tech. A lot of that monetary energy is going to flow from the asset ocean into the crypto pond and everybody that makes the transition is going to benefit as he believes that as investors understand this.