Mr. Winklevoss Wants the World to Shed Light on How Bitcoin Won’t Disrupt Gold, Any Reason Will Do
Bitcoin is a fantastic way to move funds around without any really hassles. But also, one of the major hopes among most Bitcoin proponents, apart from fund transfers, is that the asset soon becomes a proper store of value and displaces gold. Some have even called Bitcoin the
One of such Bitcoin enthusiasts is the co-founder of Gemini exchange, Tyler Winklevoss. In a recent tweet, Tyler has proclaimed that there is no reason why Bitcoin will not displace gold to become the most preferred store of value. According to his tweet:
“If you find out why bitcoin isn’t going to disrupt gold, let me know. I still haven’t found a reason.”
Will Bitcoin Disrupt Gold?
Bitcoin is only about a decade old but many already think it has the potential to displace gold, sometime soon. Gold, for more than a few hundred years, has been a very trusted and popular store of value but many people, including Max Keiser – popular host of the Keiser Report – believe that regardless of Bitcoin’s young age, it could very quickly mature and intimidate the monopoly that gold might currently hold.
Another person who has expressed a similar view is John Laforge, the current Head of Real Asset Strategy at Wells Fargo. Laforge, in a recent interview, said that gold isn’t doing as well as it used to and people should exercise extreme caution before going ahead to invest in gold. Laforge says:
“Stocks, in the last few weeks have hit, and you see the days when stocks really get hit, and what does gold do? Gold is up $3, it’s up $5, it’s up $7. I think where we are in this gold super cycle, this long cycle with commodity prices, is we’re kind of in the dull period.”
Laforge explained that since cryptocurrency is still pretty young, it shouldn’t have affected the value of gold at all. This means that regardless of the Bitcoin price surge, gold should still have appreciated and according to him, the fact that gold hasn’t appreciated much even in the midst of such Bitcoin volatility is a bad sign of a trusted store of value.
The Digital Currency Group (DCG) Bitcoin Campaign
Recently, Grayscale Investments, a subsidiary of the DCG, launched a campaign which aimed to spread the use of Bitcoin as an alternative to Gold which is currently popular not just as an investment but also as a store of value. According to Barry Silbert, the founder and CEO of the DCG, the campaign has been quite successful. Speaking on the reason for promoting this campaign, Silbert said:
“There is a generational shift in how individuals are approaching investing. We strongly believe that investments in gold will be reallocated to Bitcoin as Baby Boomers begin transferring their wealth to a younger generation of investors, one that wasn’t raised on the gold standard. The gold industry has done a fantastic job of marketing an overpriced metal, but Bitcoin has superior physical properties and market utility. I believe that Bitcoin will become the store-of-value for our digital age.”