While some executives in the industry have begun to question Bitcoin (BTC), others experts continue to support the digital-gold narrative until Whale investors like MicroStrategy cash it out.
South Korean on-chain analytics resource CryptoQuant CEO Ki Young Ju reported on Twitter that his platform had not seen any “significant onchain activities” as at 11:00 UTC on Thursday.
Ju stated that institutional investors who purchased Bitcoin via on-chain transactions have not yet sold their holdings. Ju also wrote that institutions running algorithmic trading bots believe BTC to be a stock.
CryptoQuant CEO said, “I’d prefer to stay until Michael Saylor buys Bitcoin,” adding that he supports the digital gold narrative right now.
“I believe that we can detect whale-selling activity through on the chain preemptively. I was arguing that the digital gold narrative remains valid so long as these institutions have Bitcoins. During the war crisis, there were no significant on-chain transactions. 1/ The $BTC bought by institutions via on-chain TXNs have not yet sold their holdings. 2/ Institutions that run algorithmic trading bots believe BTC to be a tech stock. I would rather stay until @saylor sells #Bitcoin. https://t.co/DQvgkAsH1R
— Ki Young Ju jugiyeong (@ki_young_ju) February 24, 2022
Vijay Ayyar (Vice President of Corporate Development at Luno Crypto Exchange) questioned whether Bitcoin was digital gold. He suggested that it is too early to consider Bitcoin digital gold.
He said that Bitcoin is still in its maturation curve and should not be considered a ‘digital gold’. Ayyar stated that Bitcoin must be widely adopted to compete with gold as a store-of-value.
MicroStrategy, which owns more than 120,000 Bitcoins as of January 31, 2022, is one of the largest public Bitcoin investors in the world, as previously reported. Despite Bitcoin’s plunge from its November 2021 peak of $69,000 to its current value of below $40,000., the company continues to purchase Bitcoin.
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MicroStrategy does not appear to be abandoning its Bitcoin treasury strategy any time soon. MicroStrategy CEO Michael Saylor stated Wednesday that uncertainty caused by conflict between nation states only highlights the benefits of investing in “pure, digital energy”.
Conflicts between nation states create uncertainty, limit production, weaken currencies, cripple trade and undermine credit. This makes investments in equity & debt more risky and underlines the benefits of converting treasury securities into pure digital energy. #Bitcoinhttps://t.co/dVkng4iCVX
— Michael Saylor (@saylor), February 23, 2022