The bitcoin vs. gold debate between gold financier Frank Giustra and the pro-bitcoin Microstrategy CEO Michael Saylor took place this week. In what viewers call an â€œepicâ€ debate and a â€œhistoricâ€ event, Saylor packed his arguments full of facts to convince Giustra to sell his gold and invest in bitcoin. Giustra, however, attacked how Saylor and the crypto community promote the cryptocurrency, calling it â€œcult behavior.â€
The Bitcoin vs Gold Debate Between Michael Saylor and Frank Giustra
The debate between gold financier Frank Giustra and Microstrategy CEO Michael Saylor on the topic of bitcoin vs. gold premiered on Wednesday. The two-hour debate was hosted by Stansberry Research and moderated by Daniela Cambone.
Giustra is CEO of the Fiore Group, a private firm managing a broad portfolio of private equity investments and companies. He also founded Lionsgate Entertainment, one of the worldâ€™s largest independent film companies. Saylor is the CEO of Microstrategy, the company which has amassed almost 100K BTC in its treasury.
The debate covered six main topics: asset comparisons, risk factors, historical performance, supply dynamics, ownership structure, and market forces. Saylor said prior to the debate that he was â€œOn a mission to convince Frank Giustrato to sell his gold and buy bitcoin.â€
However, after listening to Saylorâ€™s extensive argument about why bitcoin is superior to gold, Giustra is still not convinced he should sell his gold. Insisting on portfolio diversification, he focused on attacking the way the Microstrategy CEO promotes bitcoin in his closing remarks.
â€œYou canâ€™t keep on selling this as a guaranteed winning lottery ticket and as a cure for all the worldâ€™s ills, some Utopian fantasy you are selling here. This isnâ€™t snake oil and you should stop selling it in that fashion,â€ Giustra opined. Calling the future that Saylor described, where the only asset class one needs to own is bitcoin, â€œsheer fantasy,â€ he argued: â€œWe live in a very very competitive ugly world. I just donâ€™t see heâ€™s going to achieve that sort of global Utopian vision that bitcoin can answer the problems to everything in this world.â€ Giustra elaborated:
He proceeded to criticize the way Saylor talks about bitcoin, stating, â€œI find your style of promotion as misleading and full of hype.â€
He then attacked the crypto communityâ€™s way of supporting bitcoin. â€œI also donâ€™t like the style in which social media is being used to bully critics â€¦ The gimmicks and slogans, like the laser eyes, cyber hornets, and have fun staying poor. All this stuff to me smells like a cult, a cult behavior.â€
In conclusion, he said: â€œWhat I like to do is diversify. You never put your eggs in one basket. Thatâ€™s about the dumbest investment advice anybody can give. My suggestion to investors is to diversify a portfolio, skewed towards hard assets â€¦ that include real estate, gold, art, and bitcoin if you like. Buy bitcoin, knock yourself out, itâ€™s probably will go higher Iâ€™ve said that before. But the best strategy might be if you are going to buy bitcoin, hedge it with gold because that is goldâ€™s purpose.â€
Saylor addressed diversification in his closing remarks. â€œDiversification makes no sense when thereâ€™s a cracked answer to an engineering problem. You will never diversify the metal in an aircraft wing, or the answer to a math problem, or the shape of the shipâ€™s hull, or the oxygen content in a scuba tank. When the cabin depressurizes, you donâ€™t place an oxygen mask on 10% of your family. Money is a winner-take-all competition. There is an answer. Choosing the wrong answer has dire consequences.â€
Nonetheless, in conclusion Giustra told Saylor:
On Twitter, many people in the crypto community praised Saylor for doing a superb job, while some gold proponents cheered Giustra. A number of viewers called the debate â€œepic,â€ a â€œhistoricâ€ event, and a â€œmust watch.â€
Some crypto proponents are not impressed by Giustraâ€™s performance. One tweeted: â€œGiustra should have prepped by actually learning about bitcoin. His criticisms were baseless and juvenile. He demonstrated a complete lack of understanding of the topic. Saylor won that debate by a landslide. He also just kept insulting Michael Saylor instead of actually arguing. I was extremely disappointed.â€
What do you think about this debate? Let us know in the comments section below.
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