TL;DR Breakdown:
- Michael Saylor the CEO of MicroStrategy says that Bitcoin will go up forever.
- BTC is a more valuable asset than gold becuase of its fixed supply and growing adoption.
- The global crypto market is down by over 3% after the news of record-high inflation.
Michael Saylor, the CEO of popular business intelligence firm MicroStrategy said that Bitcoin’s value will keep increasing ‘forever’ because of its fixed supply mechanism. Saylor emphasizes that Bitcoin is the only scarcity in the world that anyone can invest in as an inflation hedge.
Michael Saylor has been a continuous advocate for the leading cryptocurrency in the market. In a recent interview, he explains that any other asset we can invest in has a supply tunnel that increases and the price goes up, such as gold, real estate, and stocks.
Even the physical supply of gold is increasing at an average rate of 2% every year, and bankers can also re-pledge gold. Banks can print 100 ounces of paper currency for every 1 ounce of gold.
In that sense, Bitcoin is a more valuable asset than gold according to Saylor, because it not only has a fixed supply but it’s also the most dominant digital monetary network. Blockstream CEO Samson Mow also agreed with Michale Saylor, emphasizing that Bitcoin is going up forever, despite its volatility in the short term.
Other giants in the financial sector like JPMorgan’s Nikolaos Panigirtzoglou have also previously stated that Bitcoin will continue to replace gold as the most effective inflation hedge.
Why is Bitcoin going down today?
With all of these optimisms shared by the big-name financial figures, you might be thinking “why is Bitcoin dipping lately?” After hitting a new all-time high of $69,044 on Wednesday, BTC suffered a sharp drop below the $63K mark on Friday.
But it’s not just Bitcoin. The global cryptocurrency market is down by 3.2% in the last 24 hours. This is due to the recent news that US inflation has gone up by 6.2% in a year, which is the highest mark in over 30 years.
The panic caused by this inflation data has seen large amounts of cryptocurrency sell-off in the market today, which has caused the top coin prices to go down. It is quite normal for people to liquidate portions of their assets whenever inflation hits the market hard. So, it’s not unusual to see BTC prices dipping since yesterday.
Bitcoin is receiving wider adoption
In a more detailed podcast, Michael Saylor mentioned that regardless of its volatility in the short term, BTC has shown tremendous growth in the longer course. The leading cryptocurrency is up by more than 300% since last year.
There’s also a wider adoption of Bitcoin happening around the industry. US politicians have started the trend of taking their paychecks in BTC. The Mayor of Miami announced yesterday that he’ll soon give out free Bitcoin for the Miami residents. There’s also the news of popular real-estate organizations across the world starting to accept BTC payments.
So, it’s safe to say that Bitcoin’s potential as an inflation hedge is being realized by people and businesses around the world, and it will only continue to grow.
