Will Bitcoin replace gold as the ultimate store of value by 2033?

In a recent podcast, Michael Saylor, the co-founder and executive chairman of MicroStrategy, called for a fundamental shift in U.S. economic policy. He proposed abandoning gold as a strategic reserve asset and replacing it with Bitcoin, which he referred to as a 'shiny dead rock'. This change aims to enhance the United States' global economic leadership as it seeks to capitalize on Bitcoin's potential growth. Saylor believes that if the U.S. divested from gold and invested heavily in Bitcoin, it could acquire a significant share of the Bitcoin network, thereby increasing its economic leverage on the global stage. Saylor's suggestions during the podcast were accompanied by a vision for a regulatory framework that would promote dominance in digital currencies. He proposed that financial institutions should be allowed to issue their own stablecoins backed by U.S. dollars, aiming to reinforce the position of the dollar as the global reserve currency. By creating substantial amounts of digital currency, Saylor asserts that the U.S. dollar could supplant other currencies worldwide, effectively merging them into a single dominant currency. However, not everyone is convinced by Saylor's approach. Gavin Baker, an investment expert, raised concerns regarding the sustainability of Saylor's Bitcoin strategy. He warned that MicroStrategy's heavy investment in Bitcoin, funded through debt issuance, could pose risks. The company's business only generates $400 million annually, which may not sustainably cover the growing interest expenses associated with its large debt obligations if Bitcoin prices do not continue to rise as Saylor anticipates. Furthermore, analysts believe that cryptocurrencies, particularly Bitcoin, are evolving into mainstream investment assets. The firm Bernstein suggests that Bitcoin could become a 'premier store of value' asset, outpacing gold over the next decade, with predictions that its price could reach $1 million by 2033. This shift reflects a broader acceptance of Bitcoin's role within institutional investment portfolios, indicating a trend toward its adoption as a key financial asset with significant implications for global financial dynamics.