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Bitcoin and gold are both valuable assets that can be used to protect against inflation; nevertheless, there are important differences between the two in terms of their history, accessibility, and other sources of demand.
Gold, undoubtedly, has a lengthy history and solid basis, while Bitcoin has barely more than a decade of existence to prove its worth as an inflation hedge.
In November of last year, the price of a single BTC soared beyond $65,000, setting a new record high. This increase was related to the introduction of a Bitcoin exchange traded fund in the United States; while others during the year were due to events involving Tesla and Coinbase, respectively.
As of this writing, BTC is trading at $$19,058.84, down 5.5% in the last seven days, data from Coingecko show, Sunday.



Michael Saylor, Source: Bloomberg
The Crypto Is So Much Better Than Gold: Saylor
Despite the fact that BTC has lost over 73% of its value since its all-time high in 2021, crypto bull and MicroStrategy co-founder and CEO Michael Saylor is unfazed.
Not only does he think the digital coin will regain its former glory, but he also thinks the cryptocurrency has a lot of room to grow beyond its current high point.
While the value of the most popular cryptocurrency in the world has been falling in recent weeks, MicroStrategy has been buying the dip. With 130,000 BTCs in its vault, it is sitting on nearly $4 billion of the crypto.
“I think that the next logical stop for Bitcoin is to replace gold as a non-sovereign store of value asset and gold is a $10 trillion asset as we speak. Bitcoin is digital gold, it’s 100x better than gold,” Saylor said during the Money Festival hosted by MarketWatch on Wednesday.
Bitcoin has a market cap of around $365 billion, according to data by TradingView on Sunday.
Bitcoin Will Hit $500,000 In 10 Years
And during the festival’s Best New Ideas segment, Saylor didn’t hold back when he predicted the crypto’s price tag may reach $500,000 within the next decade.
“The half-life of money in crypto is forever. You can move it on billions of computers at the speed of light. So if Bitcoin goes to the value of the yellow metal, it’s going to $500,000 per coin, and I think that happens this decade,” Saylor pointed out.
According to MarketWatch, Saylor has around 17,732 Bitcoins that he purchased for around $9,500. Meanwhile, MicroStrategy’s stock price has fallen almost 65% this year, just like Bitcoin.


BTC total market cap at $365 billion on the daily chart | Source: TradingView.com

Featured image from Al Bawaba, chart from TradingView.com


Bitcoin and gold are both valuable assets that can be used to protect against inflation; nevertheless, there are important differences between the two in terms of their history, accessibility, and other sources of demand. Gold, undoubtedly, has a lengthy history and solid basis, while Bitcoin has...

bitcoinist.com

Bitcoin Is ‘100 Times Better Than Gold,’ Michael Saylor Says – Here’s Why

An Israeli capital markets regulator, the Insurance and Savings Capital Market Authority, recently granted a “crypto financial services provider license” to Bits of Gold, the first such license for an active company in the country. This license allows Bits of Gold to offer crypto custodian services and to enable the safekeeping of funds belonging to retail customers.
Amendment of Israeli Laws
In what has been described as a first in Israel, the country’s capital markets regulator, the Insurance and Savings Capital Market Authority (ISACA) recently granted Bits of Gold a “crypto financial services provider license.” This license enables the crypto exchange platform to “offer custodian services” as well as to allow “its retail customers to keep their funds safely and insured” via a wallet application that will be launched sometime in October.
According to a statement, Bits of Gold was finally granted the license by the regulator after nearly five years of waiting. An amendment to the law in 2016 means the ISACA can now issue operating licenses to crypto entities.

In remarks following the announcement, Bits of Gold chief executive officer (CEO) Youval Rouach said:
Using our technology, banks and financial institutions will easily connect to what crypto has to offer for their clients. Bits of Gold Connect is an exciting development we’ve been working on for 2 years. It enables banks, fintech companies and financial institutions in Europe and in Israel, to connect to our well-established infrastructures, and offer their clients diverse crypto solutions, simply put, a way to buy, sell, and hold cryptocurrencies in an easy, safe and regulated way.
Before being granted the ISACA-issued license, Bits of Gold held a “currency service provider” permit since 2013. However, in 2018 this permit was changed to a “business continuation” permit, which the crypto exchange platform held before being granted the latest license.
Meanwhile, in the statement, Bits of Gold claimed that with the ISACA-issued license and “the Bank of Israel recent orders” the crypto exchange platform will now be able to resolve banking problems that Israeli crypto holders have encountered for years.
What are your thoughts on this story? Let us know what you think in the comments section below. 



























An Israeli capital markets regulator, the Insurance and Savings Capital Market Authority, recently granted a &#x201C;crypto financial services provider license&#x201D; to Bits of Gold, the first such license for an active company in the country. This license allows Bits of Gold to offer crypto cu...

news.bitcoin.com

Digital Asset Exchange Platform Granted ‘Crypto Financial Services Provider License’ by Israeli Regulator

Michael Saylor – Co-Founder and Chairman of the business intelligence software MicroStrategy – predicted that bitcoin’s price will reach its all-time high levels from November 2021 (approximately $69,000) “sometime in the next four years.”
Over the years, the 57-year-old entrepreneur has presented himself as an outspoken supporter of the leading cryptocurrency, while his company is the largest BTC corporate holder. Earlier this week, it accumulated additional 301 coins, rounding up its entire stash to 130,000 BTC.
Huge Jump for BTC in the Following Years
The pro-bitcoin American business executive – Michael Saylor – seems unfazed by the ongoing crypto winter. Despite the market’s collapse this year, he believes bitcoin will reach its all-time high of $69,000 in the following four years.
During his latest interview, he went further forecasting that the primary digital asset could trade at $500,000 in the next decade should it match the market capitalization of gold:
“The next logical step for bitcoin is to replace gold as a non-sovereign store of value asset.”
Michael Saylor, Source: Bloomberg
Despite the significant current difference between the two assets’ market cap (gold’s is around $11 trillion, while bitcoin’s is approximately $365 billion), Saylor has often given his preference to the cryptocurrency.
Last year, he outlined BTC’s merits and claimed that it is 50 times better than the precious metal. This summer, he doubled down on that stance, saying the asset is “obviously better than gold and everything that gold wants to be.” Instead of going to zero (as some might predict given its recent price decline), Saylor envisioned it will shoot up to $1 million in the years to come.
MicroStrategy Keeps Buying BTC
A few days ago, the company interacted with bitcoin once again, spending $6 million to purchase 301 coins at an average price of $19,851 per asset. Thus, the Nasdaq-listed firm’s crypto holdings surged to 130,000 BTC.
However, due to the market’s crash, MicroStrategy currently sits on a significant unrealized loss on its investment. Over the years, it has spent around $4 billion to accumulate its stash, while this amount is now worth approximately $2.5 billion.
The shares of the company have also been on a downtrend in the past several months. Last November (when the crypto market was at its peak and bitcoin was trading at almost $70,000), MSTR stocks were worth over $800, while now they hover below $200 (a 75% decline).
The post Michael Saylor Sees Bitcoin Trading at $69,000 in the Next Four Years appeared first on CryptoPotato.

MicroStrategy's Michael Saylor thinks bitcoin could reach $500K in the next decade if it matches the market capitalization of gold.

cryptopotato.com

Michael Saylor Sees Bitcoin Trading at $69,000 in the Next Four Years

The bitcoin mining industry has now grown to the point where it is being measured up against other similar industries that have been around for longer. However, the operations of the bitcoin mining firms to these established commodity-based firms are very different. It is most apparent in the way these companies handle their revenue with respect to administrative costs, which differs greatly between mining firms and other commodity-based firms.
Bitcoin Miners Spending Too Much
Public bitcoin miners have been shown to spend a much larger portion of their revenues on administration costs. Looking at the spending patterns of other established commodity-based companies, bitcoin miners are spending a very large percentage on administration.

The average portion of revenue spent by bitcoin miners on administrative costs came out to about 50%, although this is an industry-wide average. Some have been able to reduce their administrative spend while others have been shown to spend almost all of their revenue on this.

BTC mining firms spend more of their revenue | Source: Arcane Research
A comparison between bitcoin miners, gold mining, and the oil and gas industry shows a large disparity here. In the oil and gas industry, the average spending on administrative costs came out to 2%, whereas the administrative costs of the gold mining industry came out to 3%. 
Why Are They Spending So Much?
Bitcoin mining companies are spending so much on administration partly due to how young they are. Unlike their counterparts in the gold mining and oil and gas industries, they have not had the time to get into a balance where their administrative costs would cost just a small fraction of revenue.
Marathon Digital is a miner that uses almost 100% of its revenue. In the last year, the company reported revenues of $266 million, and $259 million had been spent on administration. The company offers a generous stock compensation program to its top employees and given that these executives had been able to hit all growth targets for the year, the company had to spend $161 million from revenue on stock compensation for its executives alone.

BTC trending above $19,000 | Source: BTCUSD on TradingView.com
On the other end of the spectrum, some miners have been able to reduce their administrative spending. Argo Blockchain was able to drop its administrative costs since 2021 to 16% of its total revenue, one of the lowest in the space.

Another reason is that the companies are so young, and stakeholders have very little oversight over the companies. And since it is a capital-intensive industry, they are able to pay out these sizable executive stock compensations. However, as the industry becomes more mature, more shareholders’ oversight is expected, leading to a clamp down on how much revenue is spent on administrative costs.
Featured image from TechSpot, charts from Arcane Research and TradingView.com
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The bitcoin mining industry has now grown to the point where it is being measured up against other similar industries that have been around for longer. However, the operations of the bitcoin mining firms to these established commodity-based firms are very different. It is most apparent in the way...

By The Numbers: How Bitcoin Mining Stacks Up Next To Gold & Oil

Data shows the public Bitcoin mining companies have been spending more excessively on administration, compared to other industries like gold mining.
Average Public Bitcoin Miner Spends 50% Revenues On Administrative Costs
According to a new blog post by Arcane Research, most BTC miners have only focused on minimizing direct production costs, and neglected indirect expenses like administration.
The “administrative costs” here refer to the expenses incurred by companies that aren’t directly related to revenue generation. Examples of such costs include stock compensation and executive salary.
The “direct production costs,” on the other hand, include mining farm staff salaries and electricity-related costs. These two expenses make up for the two main types of expenses suffered by Bitcoin miners.
Here is a chart that shows how the BTC mining production margin has been like since 2021:

Looks like Argo had 80% margins during the period | Source: Arcane Research
As you can see in the above graph, public Bitcoin mining companies have maintained their margins around 60% to 80% during recent years, suggesting that they have been good at minimizing their direct production related costs.
The report notes that these margins should be able to cover depreciation and amortization of mining assets, administrative costs, and some profit on top.

Since the first of these is unavoidable, it would appear that the best way for miners to improve their profits is to reduce the administrative costs.
However, as the below chart shows, the public Bitcoin mining companies have been spending big on these expenses since 2021.

The high revenue percentages spent on administration by the miners | Source: Arcane Research
From the graph it’s apparent that public miners have been spending an average of 50% of their revenues on administrative costs alone.
Marathon spent even higher than the rest of the market, paying off administrative expenses with 97% of their total revenues in the last couple of years.
The company’s generous executive stock compensation program is behind why the firm has been dropping nearly all of its revenues on administration.

Some companies, however, have been much better at minimizing these costs. Argo managed to keep these expenses at just 16% of its total revenues.
A look at a comparison with other industries like oil and gas industry, and gold mining reveals that Bitcoin mining firms have been spending much more excessively on these costs.

Companies in gold mining spent only 3% of their revenues on these expenses since 2021 | Source: Arcane Research
The report explains that the main reason behind this discrepancy lies in the fact that the Bitcoin mining industry is still relatively immature, and as such, their revenues are still quite low.
Companies have been hiring experienced executive teams keeping future growth goals in mind, and hence have needed to offer highly competitive packages.
However, the post points out that the mining industry is still massively overcompensating these executives. The source of this overspending is likely because of mining being a capital intensive industry, which makes it easier to finance costs like these, and the fact that shareholder oversight is weaker in these firms due to the immaturity of the sector.
BTC Price
At the time of writing, Bitcoin’s price floats around $19.4k, down 13% in the past week.

BTC surges up following a plummet | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Arcane Research


Data shows the public Bitcoin mining companies have been spending more excessively on administration, compared to other industries like gold mining. Average Public Bitcoin Miner Spends 50% Revenues On Administrative Costs According to a new blog post by Arcane Research, most BTC miners have only ...

PAX Gold price	$1,632.78
Low - High 24H	$1,624.46 - $1,640.87
Market cap	$505.65M
Volume 24H	$6.86M
All time high	$2,241.37 -27.19% May 17th 2021
All time low	$1,399.64 16.60% November 18th 2019
Genesis date	N/A

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