(Kitco News) As digital assets continue to battle through cryptocurrency winter following a massive selloff across the crypto space, Ethereum co-founder Vitalik Buterin said cryptocurrencies are still a better bet than gold. . And here are his three reasons.
Bitcoin, the world’s largest cryptocurrency, is down 70.5% from its record high of $ 69,000 seen just over a year ago, trading at $ 20,374.91. Ethereum was last at $ 1,562.51, down 68% from its record of $ 4,878 recorded on November 10, 2021.
By comparison, gold was one of the few relatively low-loss assets this year. It’s down about 10.6% year to date, the latest price trading at $ 1,635.90 an ounce.
Many industry insiders expected gold to fare much better due to stubbornly high global inflation. But the precious metal came under pressure from a strong US dollar and rising Treasury yields, which rose in light of the Federal Reserve’s aggressive tightening policy.
In a recent tweet, Buterin eliminated gold as a decentralized authority for money, stating that cryptography is a better bet.
Ether co-founder said gold is “incredibly inconvenient”, “difficult to use” and “does not support secure storage options such as multisig”.
The precious metal is particularly difficult to deal with when “transacting with untrusted parties,” said Buterin.
According to him, “gold has less adoption than cryptocurrencies, so cryptocurrencies are your best bet.”
Buterin’s comment was in response to Soonish’s New York Times bestselling author Zach Weinersmith questioning the advantages of cryptocurrency over gold. Weinersmith asked why he doesn’t choose gold when looking for an alternative to centralized authority for money.
Here is Buterin’s full answer: “Gold is incredibly inconvenient. It is difficult to use, particularly when transacting with untrusted parties. It does not support secure storage options such as multisig. At this point, gold has less. adoption of encryption, so encryption is the best bet. “
Gold is incredibly uncomfortable. It is difficult to use, particularly when transacting with untrusted parties. It does not support secure storage options such as multisig. At this point, gold has less adoption than cryptocurrencies, so cryptocurrencies are the best bet.
– vitalik.eth (@VitalikButerin) October 26, 2022
This is not the first time that Buterin has criticized gold. In his post on the 2020 closing blog, the Ethereum co-founder called gold “lame”.
Buterin examined the changing role of the economy and asked the question: “How should we re-evaluate our models of the world?” One of his key messages is that cryptocurrencies and the technology behind them have an important role to play in the future.
“It is a world in which blockchain and cryptocurrencies are well prepared to play an important role, albeit for far more complex reasons than many think, and they have as much to do with cultural forces as with anything financial (one of the bullish cases most underrated for cryptocurrency what I have always believed is simply the fact that gold is lame, the younger generation realizes that it is lame and that $ 9 trillion has to go somewhere). “
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