The co-founder of the Gemini crypto exchange, Tyler Winklevoss, has recently expressed his opinion on the fact that Bitcoin might be a much better gold than gold itself.
It’s no secret that over the past ten years approximately, the famous cryptocurrency has increased in price, overcoming numerous price comparisons in doing so. Bitcoin has become so successful that many people see it as a valuable asset more than an actual currency, a fact that prompted the comparisons with gold. Then there is also the generational gap between more traditional and older investors and young ones.
For thousands of years, people and institutions have used gold as a means to store value. Now, it seems that more and more people, including experts in the field, consider Bitcoin and gold to be on the same step. This also means that nobody should see the cryptocurrency and gold as competitors when, in fact, they are both a store of value.
Winklevoss also included a chart that compared gold and Bitcoin in his recent tweet. The chart included seven separate categories and only one of them was led by gold – the amount of money in the asset. When it comes to market caps, Bitcoin has $200 billion while gold has $9 trillion. It’s also worth noting that Bitcoin won in every other category including durability, divisibility, scarcity, storage, etc.
On the other hand, other opinions speak differently. The CEO of europac.com, Peter Schiff, has said that Bitcoin and gold could never be compared, especially when it comes to their value. He thinks that Bitcoin is too volatile in market price and not at all tangible. Schiff continues to encourage people to invest in gold because, traditionally, it has been a safe and secure way of preserving value. Warren Buffet is also on this side of the fence and has numerous times expressed his disbelief in Bitcoin. According to him, this cryptocurrency does not have any intrinsic value. Of course, it’s up to each of us to decide who is right and who is wrong in this debate that could be mostly based on a generational gap than on actual truth.
Bitcoin’s reputation as a store of value has also been increased after numerous industry giants have invested in it, especially over the course of this year. It remains to be seen how people’s perception concerning this cryptocurrency will change in the coming months, especially in the context of the ongoing global pandemic that will certainly teach us a few lessons concerning Bitcoin as a store of value.