The debate around Bitcoin and Gold is not new. Several pleas are presented for either side. Recently, in an interview, Chris Mancini, the analyst at Gabelli Gold Funds, shared his viewpoint about Gold VS Bitcoin. As per the analyst, the value of the traditional precious metal is in the uniqueness and its traditional value.
The precious metal has been valued since ages in the form of store value, natural wealth, physical entity, traditional value, and so on. Bitcoin, on the other hand, has revolutionized the whole value system. The unique selling point of Bitcoin is in its speedy transactions, liquidity, cross border nature, transparent digital ledger technology as its basis, and much more. The traditional Gold falls short in these areas as it faces threats of theft, smuggling, and impurity, and so on. Nevertheless, the heat of the debate does not seem to fade away any sooner.
In an interview with Kitco News, around the 121 Mining Investment Conference which was held in the New York City, the analyst of Gabelli Gold Funds- Chris Mancini emphasized on the big picture of the precious metal. He said that gold has been and will stay to be an “asset, a currency.” According to him, one can’t replace gold, and also gold can’t be created on man’s will, unlike other currencies that can be created.
On the other hand, in another interview on 4th of this month, Kitco News discussed the same topic with Clem Chambers- the CEO of ADVFN. He is also the author of the bestseller “101 Ways to Pick Stock Market Winners.” His views differ from Chris Mancini. He thinks that Bitcoin can easily leave gold when it comes to recognition as “money” and a “store of value.” He based his statement on the grounds of “practicality and versatility.” He illustrated his thoughts in the following manner-
I could not take enough gold out of the country for it to be useful to me if I had to leave the country; if I was a South Korean and I thought the North was going to drop a bomb on my city, if I was an Iranian that was running away from people in Iran. There are all sorts of reasons why I would want to take a lot of money abroad. I can’t take more than $10,000. In gold, I can’t carry enough, and it is too heavy. I can’t take, say, 20 kilos of gold to the airport.
Bitcoin BTC, other cryptocurrencies, tokens, and the related digital assets have been mixed bag as the concepts of blockchain technology, and the digital ledger technology is still relatively new. The cryptocurrency is still a newbie in the financial world. When any change comes, it naturally meets a lot of friction before getting accepted. People are still getting accustomed to the credibility of the new age digital currency, and it would take time to shift from the grips of the traditional financial comfort zone or the ‘known zone,’ and to embrace the ways of the crypto world.
Last month, Winklevoss Twins were seen giving their complete support for Bitcoin. They went ahead, calling it- “Gold 2.0.” One should note that while supporting BTC, the twin brothers are not completely negating the value of gold. They are rather seeing it like some kind of development, or modernization of the currency. The chief executive of Gemini recently said that both the cryptocurrency and Gold have the same potential. If seen closely, maybe cryptocurrency would even manage to beat Gold in this competition. The Gemini’s chief executive has been supporting crypto for a long time. He gives credit to Gold only in terms of its long traditional history that gives it the value it holds. One should note that he calls crypto as a form of the betterment of the traditional money. That is the reason he calls it Gold 2.0.
There are various schools of thought around gold vs. Bitcoin debate. Some are clearly for or against the topic, and some are rather trying to build a comprehensive outlook for both the valuable assets. Is Bitcoin truly a better version of the traditional currency? What are your thoughts?