Why crypto is “the better bet” compared to gold

Crypto-assets like Bitcoin and Ethereum can no longer be considered mere tenants on the fringes of the world’s current financial system.

They already have matured in such a way that they are now the driving force behind a digital revolution driven by enthusiastic investors who recognize their potential not only as a store of value but also as a source of profit.

It got to the point where some believed that a cryptocurrency like Bitcoin could end up being the best option for investors after the COVID-19 pandemic for them to address issues like price instability, extreme risk and economic crippling conflicts like Russia’s invasion of Ukraine.

With BTC catching the interest of prominent individuals, companies and even countries, crypto assets are once again pitted against the precious metal industry’s front runner, gold.

Ethereum co-founder believes crypto is better than gold

Soon-to-be author Zach Weinersmith recently posted a query on Twitter about the benefits of cryptocurrency over gold.

Vitalik Buterin, co-founder of Ethereum, black to the author’s post, saying that crypto is the best option. He went on to say that gold has “less adoption” compared to the digital asset class.

Vitalik Buterin. Image: Wired

Buterin, in response to Weinersmith’s post, said:

“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…so crypto is the best option.”

Currently, there is no recent data to quantify gold’s mass adoption, but while it has a total market value at $10.990 trillion, it does not have the all-round utility that cryptoassets are known to have.

The latter, who sits on a overall valuation of $1.02 trillion, can easily be used for trading, payment and as governance tokens for platforms running smart contracts.

Monetary System Total Control Unlikely for Bitcoin

Meanwhile, ‘Rich Dad, Poor Dad’ author Robert Kiyosaki said the two assets could act as viable Storage of value in the event of a global economic collapse.

Buterin, despite welcoming this comment from the author of the book on personal finance, said that it is unlikely that cryptocurrencies will not come to the point of taking control of the international monetary system.

The Ethereum co-founder admitted that fiat currencies or traditional currencies backed by governments will continue to dominate Bitcoin and its associated asset class.

Crypto total market cap at $939 billion on the daily chart | Featured image from Key Coin Assets, Chart: TradingView.com