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(Kitco News) As digital assets continue to battle through the crypto winter following a massive sell-off across the crypto industry, Ethereum co-founder Vitalik Buterin said cryptocurrencies are still Said it was a better bet than gold. And here are his three reasons.
Bitcoin, the world’s largest cryptocurrency, traded at $20,374.91, down 70.5% from its all-time high of $69,000 a year ago. Ethereum last hit $1,562.51, down 68% from its all-time high of $4,878 registered on November 10, 2021.
Gold, by comparison, has been one of the few assets with relatively modest losses this year. It is down about 10.6% year-to-date and is most recently trading at $1,635.90 an ounce.
Many industry experts expected gold to do much better with stubborn global inflation. But precious metals have been weighed down by a stronger dollar and rising US Treasury yields, which are advancing in light of aggressive tightening policies pursued by the Federal Reserve.
In a recent tweet, Buterin threw gold as the authority on decentralized money, saying cryptocurrencies were the better bet.
Ether co-founder says Gold is “incredibly inconvenient”, “difficult to use” and “doesn’t support secure storage options like multisig”.
Buterin said precious metals are particularly difficult to deal with when “trading with someone you don’t trust.”
According to him, gold has less adoption than cryptocurrencies, so cryptocurrencies are a better fit.
Buterin’s comments were in response to Zack Weinersmith, author of the New York Times bestseller “Soonish,” questioning the benefits of cryptocurrencies over gold. Weinersmith asked why he doesn’t choose gold when looking for alternatives to centralized money.
Here is Buterin’s full response: Gold is incredibly inconvenient, especially when dealing with untrusted parties. It does not support secure storage options like multisig. Therefore, virtual currency is mainstream. You should bet.
Gold is very inconvenient. Difficult to use, especially when dealing with untrusted parties. It does not support secure storage options like multisig. At the moment, gold is a better fit for cryptocurrencies as it has less adoption than cryptocurrencies.
vitalik.eth (@VitalikButerin) October 26, 2022
This is not the first time Buterin has criticized gold. In a closing blog post from 2020, the Ethereum co-founder called gold lame.
Looking at the changing role of economics, Buterin asked the question: ‘How should we re-evaluate our model of the world?’ One of his key messages is that cryptocurrencies and the technology behind them will play an important role going forward.
We are in a world where blockchain and cryptocurrencies are poised to play a significant role, but the reasons for this are much more complex than many think, and are as much about cultural forces and relationships as financial. Yes (one of the more undervalued bullish cases of cryptocurrency), I’ve always believed that it’s just that money is crippled, and that the younger generation realizes that money is crippled, Just the fact that the $9 trillion has to go somewhere.”
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kikko Metals Co., Ltd. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the authors can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation of an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article accept no liability for loss and/or damage resulting from the use of this publication.
