dollar mistake” by choosing to invest in bitcoin instead of gold. The
company now holds about 108,992 bitcoins.
‘Multi-Billion Dollar Mistake’ Avoided
The Nasdaq-listed software company Microstrategy has avoided making a
mistake that could have cost the company multi-billion dollars. CEO
Michael Saylor tweeted Sunday:
If I had chosen gold instead of bitcoin last year, it
would have been a multi-billion dollar mistake. It doesn’t help to
diagnose the problem if you don’t choose the right solution.
The CEO also posted the return of gold vs. bitcoin. According to his
estimation, gold returned -5.88% during the past 12 months while bitcoin
returned 376.34%. In addition, the return of gold vs. bitcoin was -80%
during the last 12 month period.
Microstrategy has made acquiring bitcoin one of its primary goals. The company now hodls about 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 until
you’ve been front-run by all the hedge funds when they dump their gold,
you’re going to be the last person out.”
In April, Saylor and Frank Giustra debated
about bitcoin vs. gold. The Microstrategy CEO explained at the time
that “Diversification makes no sense when there’s a cracked answer to an
engineering problem.” He opined: “You will never diversify the metal in
an aircraft wing, or the answer to a math problem, or the shape of the
ship’s hull, or the oxygen content in a scuba tank. When the cabin
depressurizes, you don’t place an oxygen mask on 10% of your family.
Money is a winner-take-all competition. There is an answer. Choosing the
wrong answer has dire consequences.”
Investors have been increasingly buying bitcoin as an alternative to gold. A survey
by UBS, Switzerland’s largest bank, finds that central bankers see
benefits in investing in cryptocurrencies like bitcoin. Among
respondents, 28% see cryptocurrency as an uncorrelated asset, and “11%
would consider it as an alternative to gold.”
source link : https://news.bitcoin.com/microstrategy-avoids-multi-billion-dollar-mistake-choosing-bitcoin-over-gold/
