Microstrategy, listed on the Nasdaq, avoided a “multi-billion dollar mistake” by choosing to invest in Bitcoin instead of gold. The company now holds approximately 108,992 bitcoins.
Avoid “multi-billion dollar mistakes”
The Nasdaq-listed software company Microstrategy avoided a mistake that could have cost the company billions of dollars. CEO Michael Saylor tweeted on Sunday:
If I had chosen gold instead of Bitcoin last year, it would have been a billion-dollar mistake. It won’t help diagnose the problem if you don’t choose the right solution.
The CEO also published the return on gold versus bitcoin. By his estimate, gold returned -5.88% over the past 12 months, while Bitcoin returned 376.34%. In addition, the return on gold versus Bitcoin has been -80% over the past 12 months.
Microstrategy has made the acquisition of Bitcoin one of its main goals. The company now holds around 108,992 BTC.
Saylor said earlier this year: “Gold is dead money. Sell your gold, buy bitcoin because other people are going to sell their gold, and if you wait for all of the hedge funds to be on top when they dump their gold, you will be the last person out there.
In April, Saylor and Frank Giustra debated Bitcoin vs. Gold. “Diversification doesn’t make sense when there is a cracked answer to a technical problem,” said the CEO of Microstrategy at the time. He said, “You will never vary the metal in an airplane wing, or the answer to a math problem, the shape of the ship’s hull, or the amount of oxygen in a scuba tank. If the cabin becomes depressurized, 10% of your family will not put on an oxygen mask. Money is a winner-take-all competition. There is an answer. Choosing the wrong answer has dire consequences. “
Investors are increasingly buying Bitcoin as an alternative to gold. A survey by UBS, the largest bank in Switzerland, shows that central bankers see advantages in investing in cryptocurrencies like Bitcoin. Among respondents, 28% see cryptocurrency as an uncorrelated asset and “11% would consider it an alternative to gold”.
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