Some industry executives questioned if Bitcoin (BTC) is the digital gold in the wake of Thursday’s big market drop. However, other experts backed the digital gold narrative for the time being, or until whale investors like MicroStrategy cash out.
On Thursday, Ki Young Ju, the CEO of South Korean on-chain analytics resource CryptoQuant, came to Twitter to say that as of 11:00 a.m. UTC, his platform had not noticed any “major on-chain actions.”
Institutional investors that purchased Bitcoin through on-chain transactions do not appear to have sold their holdings yet. According to Ju, who also stated that “institutions using algorithmic trading bots believe BTC is a tech stock.”
“I’d rather stay until Michael Saylor sells Bitcoin,” said the CryptoQuant CEO. Adding that he still believes in the digital gold narrative for the time being:
“I believe we can preemptively detect whale selling activities using on-chain. As long as these institutions have Bitcoins, the digital gold narrative remains viable.”
The reality of calling Bitcoin “digital gold”
Vijay Ayyar, vice president of business development at the Luno crypto exchange, questioned the reality of calling Bitcoin “digital gold” on Wednesday. implying that it is too soon to conceive of BTC as digital gold.
“Bitcoin is still early in its maturation curve to be properly placed in the category of digital gold,” he explained. Bitcoin, according to Ayyar, has to gain greater widespread adoption in order to compete effectively with gold as a store of value.
MicroStrategy is one of the world’s largest public Bitcoin investors, with over 120,000 BTC as of January 31, 2022. Despite Bitcoin’s dropping from a peak of over $69,000 in November 2021 to a current value of about $40,000, the corporation continues to buy it.
MicroStrategy isn’t planning to ditch its Bitcoin treasury strategy anytime soon. The instability produced by nation-state wars, according to MicroStrategy CEO Michael Saylor, only emphasises the value of investing in “pure digital energy.”