Binance CEO, Changpeng ‘CZ’ Zhao has waded into the Bitcoin vs Gold argument, ironically complementing an earlier eulogy from BTC bull Michael Saylor.
Comparing Bitcoin and Gold is an argument that is over a decade old. With proponents and critics on the two sides of the aisle, most Bitcoin proponents like Saylor have resorted to allowing data to judge which asset is better.
Over the past weekend, Saylor, recognized as the founder and Chairman of Business intelligence and software firm, MicroStrategy shared a chart comparing the performance of Bitcoin vs Gold from August 2020 when it first adopted its Bitcoin strategy.
Per the data shared as shown above, Bitcoin has soared by 214% while Gold has reversed its growth within that time with valuation down by 3%. Michael Saylor posted the chart to wade off naysayers and unbelievers who believe MicroStrategy’s Bitcoin strategy was not the best move.
Bringing the conversation back to the fore, Binance CEO said “Bitcoin is not a good store of value” because “it’s too volatile.” This ironic statement leans on the strongest arguments of Bitcoin critics, but the trend has shown that its volatility generally gives better returns when compared to Gold.
There is a shifting dynamics in the viability of assets that can play the role of store of value and hedge against inflation. While Gold has played this role for centuries, big believers like Michael Saylor are optimistic Bitcoin is here to take over.
From the point it started buying Bitcoin, MicroStrategy maintained the resolve that its support for the coin is long-term in nature. While the company has only sold its Bitcoin holdings once to bolster its accounting demands, it has not sold any of the BTC in its bag.
With the latest acquisition coming as recently as the last quarter (Q3), MicroStrategy now has a total of 158,400 BTC units in its portfolio. With this massive unit acquired for a total cost of $4.69 billion, or $29,586 per Bitcoin, it means MicroStrategy is sitting on a massive profit judging by the current price of Bitcoin pegged at $36,566.96 per coin.
MicroStrategy has effectively shown Wall Street that Bitcoin might have a lower market cap compared to Gold, but it is the future. Many experts assume that the yet-to-be-approved Bitcoin spot ETF will add to the intrigue and usher in more institutional investors in Bitcoin.
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