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Bitcoin Exhibits Similar Characteristics to Gold
John D’Agostino likens Bitcoin to gold, noting that the primary motivation for many institutional investors to purchase Bitcoin is to hedge against the risks of currency devaluation and macroeconomic uncertainty. He stated: “The trading behavior of Bitcoin is returning to its core characteristics, which are remarkably similar to gold, including scarcity, immutability, and the cross-border portability of a non-sovereign asset. In other words, it is being traded in a manner that Bitcoin believers appreciate.” D’Agostino further elaborated that there are very few assets in the market that possess characteristics akin to gold, with Bitcoin being one of them.
Governments and Financial Institutions Compete to Position Bitcoin
Currently, many governments and financial institutions are actively positioning themselves in Bitcoin, aiming to safeguard the purchasing power of fiscal reserves and assets amid inflation, economic shocks, and geopolitical tensions. For instance, countries like El Salvador and Bhutan have explicitly established national-level Bitcoin reserves and are actively purchasing Bitcoin as a reserve asset. In addition, numerous local and state governments have also introduced Bitcoin-friendly policies and legislation to protect government treasury assets from the devaluation of fiat currency through Bitcoin reserves.
On the corporate side, Michael Saylor’s company, Strategy (formerly MicroStrategy), was the first to promote the concept of Bitcoin as a corporate reserve asset globally, leading to an increasing number of companies adopting this approach, including MARA, MetaPlanet, and Semler Scientific. Michael Saylor further transformed his company, originally focused on business software and intelligence, into a Bitcoin holding company, functioning similarly to a Bitcoin hedge fund. According to the latest data released by Michael Saylor, over 13,000 institutions now directly hold shares of Strategy, with indirect beneficiaries totaling approximately 55 million people.
Bitcoin’s Market Value Surpasses Google
Recently, Bitcoin’s market capitalization temporarily surpassed that of Google, successfully entering the top five global assets by market value, even ranking above Amazon and silver. This showcases the astonishing growth rate and market recognition of this limited quantity digital asset since its inception in 2009.
