Bitcoin Is Now Competing Against Traditional Assets, Investor Says
According to Michael Saylor, a massive investor and the creator of Microstrategy, Bitcoin is vying with traditional store-of-value assets such as Gold and real estate. The statement by Saylor, whose firm owns around $3 billion worth of Bitcoin, follows the return on investment (ROI) that BTC has given this year when compared to that of Gold. Saylor’s company also owns about $3 billion worth of Gold.
On-chain research revealed that Bitcoin’s value has increased by more than 47% to date, whilst the price of an ounce of gold has only managed to increase by 0.38% from the beginning of the year to the end of the first month of this year.
Michael Saylor also cites an article named “Bitcoin’s full potential valuation” which states that any assets have varying “ceilings,” or the maximum percentage of the total global asset pie that they could ever reasonably account for.
This is due to the fact that the value of each asset category is restricted by key variables in the valuation formulae that are specific to that category. According to the post, what makes Bitcoin so different is that the market has to absorb half as much new supply from “mining” every four years.
Why Bitcoin is surging in the recent past
With a moderate drop in inflation in December, experts think that the Federal Reserve (Fed) may have decided to suspend its rate rises, which may have contributed to the rise in the value of the cryptocurrency market.
The stock market, gold prices, and bitcoin prices have already been impacted by inflation. Yet, according to Kumar Gaurav, founder, and CEO of Cashaa, a crypto neo-bank, the institutionalization of Bitcoin as well as a plethora of Fed initiatives taken in the previous year may have proven to be a boon for the cryptocurrency.
A number of analysts have an optimistic outlook for Bitcoin in preparation for the so-called “halving event” that will take place in 2024. It has been discovered that the rewards given to Bitcoin miners are reduced by one-half every four years (3.125 BTC). It is thought that this will favor demand as the supply continues to decrease.
Bitcoin is still in the green
As a result of these pronouncements, Bitcoin bulls have been able to maintain the required pressure, which has maintained the price of the cryptocurrency in the green zone. To be more specific, the Bitcoin to US Dollar exchange rate was last seen at 24,935.73 USD, reflecting an increase of 0.40% over the previous 24 hours and a 24-hour trading volume of $34,173,465,525.
It has a maximum limit of 21,000,000 BTC coins but can only have a circulating quantity of 19,296,881 BTC coins at any one time.
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