Ethereum (ETH) co-founder Vitalik Buterin believes that crypto is a better asset to hold than gold, adding that it already has more adoption than a physical asset.
Buterin made the comment in response to Zach Weinersmith’s remark that gold is a better investment than Bitcoin (BTC) since it already satisfies the need of cryptocurrency proponents who reject the idea of a centralized authority over money.
No Safe Storage For Gold
Vitalik made the point that there is no safe storage solution for gold where several individuals can regulate access like multisig crypto wallets, making it exceedingly cumbersome and challenging to use, especially when trading with an untrusted party.
According to Buterin, gold has less adoption than crypto at this point in our development and that makes crypto a better bet for investment. Vitalik has made the comparison between cryptocurrency and gold before. He said on Twitter in 2018 that Bitcoin is a superior store of wealth than gold, both personally and socially. The tweet stressed crypto was better for the environment than gold and that was one of the main reasons he backed crypto.
Hayden Adam, the founder of Uniswap, agreed with Buterin. He added that gold also had the risk of huge centrally controlled inflation due to asteroid mining.
Gold Market Cap Reduced By Crypto
Investors have debated the superiority of gold vs cryptocurrencies for more than ten years. While the recent market slump has demonstrated that cryptocurrencies do not actually serve as an inflation hedge, gold’s value has also decreased year to date.
Meanwhile, as more investors view Bitcoin as a store of value despite its poor performance this year, the wider acceptance of cryptocurrencies also implies that gold’s market cap is steadily being eaten away by crypto.
This is clear from the volume of transactions made between Bitcoin and the British pound in the wake of Liz Truss’ disastrous mini-budget. As the value of the pound fell, trading volume between bitcoin and the pound increased by 233% in September.
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