As people all over the world rally to invest in Gold to maintain their dwindling purchasing power and rescue their savings from continuously faltering currency values, Vitalik Buterin, famed creator of Ethereum, argues that crypto is a “better bet.”
This is not the first time he makes his feelings known. In 2018, he tweeted a similar sentiment.
The conversation about how well cryptocurrency holds its value amid rising inflation in comparison to Gold was particularly heated last year, a time where Gold suffered serious hits as the U.S. dollar gained strength, while Bitcoin continued to rise in value as a result of increased institutional adoption by companies such as MicroStrategy, Square (Now Block), and Tesla.
Bitcoin losses in 2022, however, amounted to over $2 trillion in market capitalisation, marking one of the longest bear markets to date. The second quarter was the worst, recording a 56% drop, its highest performance plunge in a decade.
Conversely, recent data retrieved from the Finbold Bitcoin ROI tool revealed that Gold is also losing its footing against other precious metals, including Silver and Platinum, which beat Gold by 64.12% and 111.58% respectively.
After a brief March peak of $2,069, Gold prices have plummeted to $1,645 as of September 23rd, a startling 20.49% decrease in the span of six months.
Although Finbold confirms that Gold would have been a 40% better investment than Bitcoin in 2022, Bitcoin proponents remain strong believers in the cryptocurrency, which not only still has the highest market capitalization at $377 Billion, according to data from Forbes Advisor, but is widely expected to have a strong comeback in the next few years.
Another thing to consider is that although the value of cryptocurrency is prone to market tribulations, it is inherently immune to inflation due to its scarcity. The U.S. dollar, on the other hand, can easily be increased by the Federal Reserve at any time.
According to JPMorgan, Bitcoin also beats Gold as a store of value on eight key factors, being: durability, portability, fungibility, divisibility, scarcity, verifiability, censorship, and overall history.
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