The Coronavirus pandemic has brought economic instability. Many people have plunged into the Crypto market and other digital assets, while others take the Gold route.
As a result, there is a heated debate online about what is more valuable: Gold or Bitcoin. One of the debates covered was between Michael J. Saylor and Frank Giustra.
Michael Saylor argued that Bitcoin, popularly referred to as the digital or the new Gold, portrays Gold’s characteristics without its flaws.
According to Michael, Gold is an attractive metal, but it just doesn’t make a perfect monetary asset. The reason is that one can inflate, confiscate, and counterfeit it. Additionally, it occurs in a heterogeneous fashion.
Crypto, on the other hand, Michael says, “is not just an asset it is a network.” He went ahead to give advantages of Bitcoin, including;
- Global- anyone can run it with a node
- Instantly transferable
On the other hand, Frank says that Gold is more advantageous as it has stood the test of time and Bitcoin has not. He also addressed concerns on whether or not BTC will get accepted as a mode of payment.
Although countries like El Salvador are adopting it as a mode of payment, others like China are banning Crypto activity.
Bitcoin still has a long time before it gets accepted globally as a mode of payment due to slow transactions and high transfer fees.
To counter these claims, Saylor says BTC is mature and appreciates more than two hundred percent annually.
Giustra also pointed out the fact that Gold shouldn’t be a worrying factor to the Crypto investors. They should be more worried about the Central Banks.
Governments also want taxes, and the lack of regulation on Crypto would lead to significant steps by countries. Take China as an example. They recently banned Crypto activities.
The result could be a catastrophe for its holders as only a minor group will use it, making its value drop.
Saylor argued that people couldn’t create more Gold as it is finite. On the other hand, humans can intervene in the amount of Bitcoin.
The debate was full of insight, and it might go on for a while. There are more than just those two assets in terms of value. Who do you think won the debate?
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