MicroStrategy CEO Michael Saylor has said in an interview that bitcoin is “outperforming gold as an inflation hedge” by a factor of 50 and believes the flagship cryptocurrency is 50x better than the precious metal.
Speaking during CNBC’s Fast Money, Saylor claimed bitocin has been outperforming gold as an inflation hedge as the price of the flagship cryptocurrency is up over 300% over the last 12 months, while gold is up only 7% over the same period.
“I think in the past 12 months, we have all been waiting for inflation, and I think we are seeing it now. I think investors are seeing that bitcoin is up by 330% and gold is up 7% in that period. So, bitcoin is outperforming gold as an inflation hedge by a factor of 50.
Saylor added that as a result, we are now seeing investors including legendary billionaire Paul Tudor Jones reveal he likes bitcoin as a portfolio diversifier and consider doubling or tripling his allocation into BTC.
The business intelligence firm CEO added, however, he is “surprised they are not increasing their allocation by a factor of 10 because gold is 50 times better.” He noted that while the asset is risky, he believes MicroStrategy’s investors and shareholders are happy with the firm’s allocation.
The Nasdaq-listed company has over the last few months invested heavily in BTC, buying up 92,079 coins so far, worth over $3.6 billion. The firm has this week raised $500 million selling bonds to buy more BTC, and is reportedly selling up to $1 billion of its stock for the same purpose.
During the interview Saylor, an outspoken bitcoin supporter, was also asked about the second-largest cryptocurrency by market capitalization, Ethereum. He noted he sees ETH is a “digital application” that is looking to “dematerialize the JPMorgan building, the banking establishments, and all of the exchanges.”
As for stablecoins, Saylor said these have a place in the ecosystem, just as central bank digital currencies will have as these have a similar role.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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