Tyler Winklevoss, of the famous Winklevoss twins and co-founder of cryptocurrency exchange Gemini, believes that Bitcoin is a better gold than the precious metal itself. He commented on this, looking at numerous factors stating that Bitcoin is “better at being gold than gold” by a massive amount:
#Bitcoin is better at being gold than gold — and not just incrementally, but by an order of magnitude or 10X better. pic.twitter.com/rhKOQD44AZ
— Tyler Winklevoss (@tylerwinklevoss) September 21, 2020
Looking at scarcity, storage, durability, portability, divisibility, counterfeit opportunities and adoption, Winklevoss noted that Bitcoin beats gold on all accounts but adoption. Market cap, according to the cryptocurrency mogul, is the only thing that gold wins out on compared to Bitcoin.
However, over the past decade, almost close to the launch of Bitcoin, the cryptocurrency industry has seen an enormous increase in volume. This suggests that mass adoption simply hasn’t been seen yet as a result of how novel the asset still is. Launched initially for transactional purposes, Bitcoin has become a store of value, with public investors comparing the cryptocurrency to gold.
Bitcoin and gold: Both beneficial to hedge against the declining dollar
“Digital Gold”, as some call Bitcoin, has also become a popular safe-haven asset to hedge against inflation amidst rising economic concerns as a result of the Coronavirus pandemic. As the world’s economy faces a struggle following national lockdowns across the world, severed supply chains, and a growing global debt, many investors are turning away from sinking their funds into fiat currency. This leads them to Bitcoin and other alternative assets.
Even though there is a comparison to be made between the digital asset and the precious metal, there are similarities between the two; mainly linked to their store of value.
NebraskanGooner, a pseudonymous crypto trader offered an opinion on the matter to news media house Cointelegraph, stating: “I don’t understand why there’s a competition between gold and Bitcoin. I consider them both a store of value.”