Max Keiser: Gold Had Thousands of Years, Bitcoin Will Be Under 25 Years to Be Considered ‘Premier Money’
Bitcoin is trading at a price of $5,250 BTC/USD and has been in a 16 month bear market but does not stop the truest believers from advocating for bitcoin's long term goal and purpose. Establishing a store of value for any potential currency is a necessary step in authenticating it.
A recent crypto news website article from EWN points out that over three millennia ago, gold was accepted in Africa as a medium of exchange and even a store of value, leading to the implementation of the Gold standard in 1945.
It took Gold thousands of years to establish itself as our premier money.
It will take #Bitcoin less than 25 yrs to do the same.
— Max Keiser, tweet poet. (@maxkeiser) April 28, 2019
Jim Rickards, the author of Currency Wars: The Making of the Next Global Crisis, is a well-known Bitcoin bear, and he completely disagrees with the prediction. Right now, an ounce of gold is worth $1.286, but Rickards sees this value rising to $10,000 at some point.
As far as Bitcoin goes, Rickards calls the interest “the second biggest bubble in history after tulip mania.”
While Rickards clearly is not in denial, he has been clear about his opposition to price action. He believes that the Bitcoin price is entirely based on fraudulent trading activities, and that the traders are “painting the tape.” Furthermore, he added that Bitcoin could end up surviving a financial crisis considering the falsely-awarded value.
The majority of Bitcoin proponents believe that the programming of the coin has everything to do with its success. They believe in the cause that Bitcoin represents.
While these two factors are noble reasons to believe in something, it is difficult to say what BTC is worth as a result. When looking at the architecture, the utility, and its rarity, the value is much clearer – “new age Gold,” as EWN writes.
In the rules of economics, utility and scarcity determine how valuable a product is. Though the coin will not go through a gold rush, the coin’s cap could end up leading to an influx and a price crash.
Bitcoin is earning more widespread market acceptance, and the main factor that is contributing to the price in this matter happens to be supply and demand. With decentralization, immutability, and other important features, it has gained a lot of support from the public.
Satoshi created Bitcoin with the intention of allowing the public to own it, rather than a government or a company.
With these ideas in mind, there is a good chance that cryptocurrencies could take over and replace gold.
“Sound money is an essential requirement for individual freedom from despotism and repression, as the ability of a coercive state to create money can give it undue power over its subjects” @saifedean #bitcoin
— Ben Prentice (@mrcoolbp) April 28, 2019
Are the 25 years predicted by Keiser enough to allow for this change to take place? Maybe. The last ten years have been enough for Bitcoin to start disrupting the financial industry. What could happen with more time?
Live Bitcoin (BTC) Price:
1 BTC/USD =$57,949.8433 change ~ -0.69%