Michael Saylor Asserts Bitcoin’s Dominance Over Gold Amid BTC ETFs Milestone

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As a seasoned financial analyst with decades of experience under my belt, I find myself increasingly intrigued by the dynamic world of cryptocurrencies, especially given the recent surge and dominance of Bitcoin over traditional commodities like gold.

Michael Saylor, the founder and chairman of MicroStrategy, once again expressed his conviction that Bitcoin outshines gold, as the digital currency keeps making strides. This assertion follows the rapid expansion of BlackRock’s Bitcoin ETF, which surpassed the growth milestone set by their gold ETF over a 20-year period in just under a year.

Michael Saylor Asserts Bitcoin’s Dominance Over Gold

The ETF (Investment of the Future – Bitcoin Tracker – IBIT) has experienced significant growth, managing a whopping $57.8 billion in just its first year. Michael Saylor from BlackRock argues that Bitcoin is surpassing gold in influence due to recent milestones related to Bitcoin ETFs.

In contrast, it took iShares Gold Trust (IAU) by BlackRock 20 years to accumulate $33 billion in Assets Under Management (AUM). However, the speed at which this was achieved highlights a growing trend among investors to favor digital assets over traditional commodities such as gold.

Michael Saylor, founder of MicroStrategy, has underscored the rapid expansion of Bitcoin ETFs, crediting Bitcoin’s unique qualities as a top-tier store of value. In a recent post on platform X, he declared that digital gold is superior to traditional gold. He highlighted the growing preference for Bitcoin as a means to combat inflation and as a long-term investment, due to its characteristics.

In the last two weeks, over $5.5 billion flowed into Bitcoin ETFs, with IBIT leading inflows of 500,000 BTC. This surge in institutional demand has solidified BlackRock’s position as a dominant player in the cryptocurrency ETF market.

U.S. Bitcoin Supply Declining Amid ETF Growth

The rise in the number of Bitcoin Exchange Traded Funds (ETFs) seems to correspond with a decrease in Bitcoins stored on trading platforms. This pattern hints at a transition towards long-term investments, as both institutional and individual investors increasingly adopt Bitcoin ETFs.

On a single day, December 17th, IBIT received an influx of approximately $740 million, which accounted for about $493 million in total inflows from all Bitcoin ETFs that day.

As a researcher, I’ve been strongly advocating for the growing trends in digital currencies, particularly Bitcoin. I believe that governments and institutions should seriously consider adopting Bitcoin as a strategic reserve asset. In light of President-elect Donald Trump’s pro-crypto stance, it seems an opportune moment to suggest replacing a significant portion of the U.S.’s gold reserves – which currently account for 72% of its financial reserves – with Bitcoin. My reasoning is that Bitcoin has the potential to surge in value, reaching trillions of dollars. I’ve stated this boldly: “Sell all the U.S. gold and invest in Bitcoin; it will rise to trillions of dollars.

At the same time, the CEO of CryptoQuant, Ki Young Ju, called for South Korea to establish a strategic reserve for Bitcoin. He pointed out that the Korean Won to US Dollar exchange rate is approaching a 15-year peak, drawing attention to previous economic difficulties using the X platform as a reference.

As a crypto investor reflecting on the past, I recall how during the 1998 IMF bailout, we managed to persevere through a period of economic instability by participating in a gold-collecting campaign. Now, with similar uncertainty looming, it seems prudent that we prepare for potential hardships by launching a digital equivalent – a Bitcoin accumulation drive. Among the countries that could particularly benefit from such a strategic reserve, South Korea stands out as the one that needs it the most.

Ethereum ETFs Also Gain Momentum

ETFs based on Ethereum, such as BlackRock’s ETHA, have seen a surge in popularity. Specifically, ETHA received $134 million in investments on December 17, making up 93% of the total Ethereum ETF investments that day.

Michael Saylor, founder of MicroStrategy, has mainly invested in Bitcoin but has acknowledged the increasing popularity of other digital currencies such as Ethereum. Even so, he remains a strong advocate for Bitcoin as the best choice for long-term investment. Currently, at the time of reporting, the price of BTC was being traded at approximately $104,366k, representing a 3.56% decrease from its new record high of $108,268k.

At the same time, Michael Saylor earlier forecasted that Bitcoin’s market value might one day exceed an astounding $280 trillion, far outstripping gold’s present market value of $45 trillion. As a result, under Saylor’s guidance, MicroStrategy has systematically accumulated Bitcoin, currently holding more than 402,100 coins worth around $40 billion.

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2024-12-18 19:12