Buterin says crypto is a better bet than gold

Ethereum (ETH) co-founder Vitalik Buterin believes that crypto is a better asset to hold than gold, adding that it already has more adoption than a physical asset.

Gold is incredibly impractical. It is difficult to use, especially when dealing with untrustworthy parties. It does not support secure storage options such as multisig. At this point, gold has less adoption than crypto, so crypto is the best option.

— vitalik.eth (@VitalikButerin) 26 October 2022

Buterin made the statement in response to Zach Weinersmith saying that people should buy gold over Bitcoin (BTC) since it already fulfills crypto advocates’ claim that they don’t want a centralized authority for money.

Vitalik pointed out that gold is very inconvenient and difficult to use, especially when trading with an untrusted party, and has no secure storage option where multiple people can control access like multisig crypto wallets. Buterin said:

“At this point, gold has less adoption than crypto, so crypto is the best option.”

This is not the first time Vitalik has said that crypto is better than gold. In 2018, he tweeted that Bitcoin is better than gold as a store of value both individually and socially.

“I harp on Bitcoin PoW mining that destroys the environment a lot, but gold is worse.”

He added.

Uniswap founder Hayden Adam supported Buterin’s view, add that “gold also has the risk of huge centrally controlled inflation due to asteroid mining.”

For over a decade, investors have argued over which asset is better – gold or crypto. But while the current market downturn has shown that crypto does not live up to the claim of a hedge against inflation, gold has also fell in value so far this year.

Meanwhile, the broader adoption of cryptocurrencies also means crypto is gradually eating away at gold’s market value as more investors look to Bitcoin as a store of value, despite its poor performance this year.

This is evident in the trading volume between Bitcoin and the British pound following the ill-fated mini budget of former Prime Minister Liz Truss. As the pound crashed, trading volume between BTC and GBP rose 233% in September.