In an interview on Bloomberg Television, Michael Saylor, MicroStrategy Inc.’s chief executive officer said: “In an expansionary, monetary environment, you want scarce assets. The scarcest asset in the world is Bitcoin. It’s digital gold.”
“If we bought gold instead of Bitcoin, we would be down $2 billion. It would have been a disaster. Once people start thinking about what they want, which is a non-sovereign, safe-haven store of value, they’re going to realize that Bitcoin does the job of gold better, and you’re seeing all of the institutional flows move out of gold into Bitcoin,” Saylor added.
Bitcoin can be a risky investment
Although the price of Bitcoin is surging since the start of February, the digital currency can be a really risky investment. The cryptocurrency market is highly volatile, and since Bitcoin is decentralized; the price of the token can decline dramatically. For instance, In 2017, Bitcoin plunged from $17,000 to $3000 after a long rally.
Danyaal Rashid, head of Thematic Research at GlobalData wrote: “If Elon Musk can help dictate the price of this asset with a tweet or large order, the same could happen to send the price back down. The task of purchasing a vehicle should not be speculative. Consumers who may have thought of buying bitcoin to use as a substitute for fiat – could very easily end up with more or less than they bargained for.”
