The growth of Bitcoin (BTC) has led some proponents to share the view that the crypto will take over gold on various metrics such as store of value and eventually replace the precious metal. Despite the recent market crash, big-name crypto players have confirmed the prediction that Bitcoin Gold will plunge is still on course.
Notably, outgoing MicroStrategy (NASDAQ:MSTR) CEO Michael Saylor stated during an Aug. 13 interview with Stansberry Research that gold would likely experience demonization fueled 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 unlike gold, bitcoin has a higher chance of being adopted as a currency by more jurisdictions.
“Conventional critics and mainstream analysts don’t understand cryptoeconomics, they don’t understand Bitcoin and they hate volatility<…>Bitcoin will gradually demonstrate gold over time, gold will reach the use value of gold, but it won’t be introduced as money in the 21st century,” Saylor said.
Dealing with the volatility of Bitcoin
On concerns about Bitcoin’s volatility, Saylor said that long-term investors shouldn’t bother realizing that price fluctuations are part of the asset’s life path. He suggested Bitcoin was criticized for volatility because investors wanted to make money in the short term.
In that line, Saylor explained that long-term strategy guided MicroStagey’s Bitcoin investment plan. Notably, the company has accumulated over 200 BTC since entering Bitcoin in August 2020.
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 revenues of $122.1 million versus expectations of $126 million.
Additionally, the company recorded losses of $918.1 million, with $917.8 million attributable to its bitcoin holdings.
Bitcoin has likely bottomed out
Elsewhere, Saylor suggested that recent gains in the crypto market suggest Bitcoin has bottomed. Notably, bitcoin was trading at $24,500 at press time and is up nearly 3% over the past 24 hours.
“The market appears to have bottomed out where its fundamentals are taking shape as investment-grade institutional assets and are being welcomed by regulators, lawmakers and large investors,” he said.
It is worth noting that after a difficult first half of the year, Bitcoin has led the crypto market alongside Ethereum (ETH) in a short-term rally.
Watch the full interview below: