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Bitcoin is going to 'eat' gold because it has all of its positives and none of the negatives, Michael Saylor says

MicroStrategy CEO Michael Saylor
MicroStrategy CEO Michael SaylorJoe Raedle/Getty Images
  • Bitcoin is going to "eat" gold because it has all of its positives and none of the negatives, Michael Saylor said in an interview with CNBC.

  • The comments come on the heels of Saylor's company, MicroStratgy, buying an additional 12,000 bitcoin this week.

  • MicroStrategy now owns about 205,000 tokens worth more than $14 billion.

Crypto bull Michael Saylor has been on a bitcoin-buying spree, and he thinks the digital currency is on pace to replace gold.

"Bitcoin is certainly at least digital gold," Saylor said in a CNBC interview on Monday. "It's going to eat gold. It's got all of the great attributes of gold and none of the defects of gold."

Saylor used one well-established argument: that bitcoin's digital nature makes it easy to move across the world in mere seconds, as opposed to a physical asset like gold.

"Bitcoin is a superior investment to gold, equity bonds and real estate because it's digital," Saylor said. "You can trade it a million times faster than conventional assets using a computer. It's available. Most other assets trade less than 20% of the time. Bitcoin is trading 168 hours a week."

Saylor — the chairman and cofounder of MicroStrategy — pivoted the firm into a bitcoin-buying operation in 2020, and has amassed 205,000 tokens worth more than $14 billion as the cryptocurrency has surged more than 1,000%. MicroStrategy bought an additional 12,000 bitcoin this week, one of its largest single purchases on record.

Bitcoin has enjoyed a record-setting run of late, surging above the $72,000 level for the first time on Monday. The gains have come amid increased demand following the approval of an array of bitcoin ETFs, and as investors preapred for the upcoming halving event that will reduce supply.

JPMorgan pointed out in a recent research note that the shift away from gold, towards bitcoin, is already taking place. On a volume-adjusted basis, and at its current price, bitcoin already makes up a larger allocation of investor portfolios than gold, the firm said.

Read the original article on Business Insider