The growth of Bitcoin (BTC) has seen some proponents share the view that the crypto will overtake gold on various metrics as the store of value and eventually replace the precious metal. Despite the recent market crash, notable crypto punters have maintained the forecast that Bitcoin toppling gold is still on course.
Notably, during an interview with Stansberry Research on August 13, outgoing MicroStrategy (NASDAQ: MSTR ) CEO Michael Saylor stated that gold will likely experience demonization triggered by Bitcoin’s growth.
However, Saylor acknowledged that Bitcoin’s path to replacing gold would be marked by ups and downs. Interestingly, Saylor noted that Bitcoin has a greater chance of being adopted as a currency by more jurisdictions, unlike gold.
“Conventional critics and mainstream analysts don’t understand the crypto economy, don’t understand Bitcoin, and they hate volatility<...>Bitcoin is going to gradually demonetize gold over time, gold will go to the utility value of gold, but it won’t be adopted as money in the 21st century, Saylor said.
Managing Bitcoin’s Volatility
As for concerns about Bitcoin’s volatility, Saylor said long-term investors shouldn’t bother to note that fluctuations in price are part of the asset’s decay path. He suggested that Bitcoin has come under fire for volatility due to investors looking to make money in the short term.
In this line, Saylor stated that the long-term strategy had guided MicroStragey’s Bitcoin investment plan. Especially since venturing into Bitcoin in August 2020, the company has accumulated over 200 BTC.
Saylor, who was key to the strategy, has come under fire after the company plunged into losses. During the second quarter of 2002, MSTR reported quarterly revenue of $122.1 million versus expectations of $126 million.
Furthermore, the company also posted $918.1 million in losses, with $917.8 million attributed to its Bitcoin holdings.
Bitcoin has probably bottomed out
Elsewhere, Saylor suggested that recent gains in the crypto market indicate that Bitcoin has bottomed out. Notably, at press time, Bitcoin was trading at $24,500, representing a gain of nearly 3% over the past 24 hours.
“The market looks like it’s at the bottom where its fundamentals are emerging as an institutional investment grade, and being embraced by regulators, legislators and large-scale investors,” he said.
It is worth mentioning that after experiencing a rough first half of the year, Bitcoin along with Ethereum (ETH) have led the crypto market in a short-term rally.
Watch the full interview below: