2018-8-24 21:38 |
At the forefront of digital economy, Bitcoin is a first-born real cryptocurrency whose abundant future was widely debated ever since the launch. Many analysts and enthusiasts in the industry have been drawing connections between the inherent natures of gold and the digital currency. Some even predicted Bitcoin was to replace gold as the preferred alternative asset and store of value for investors one day.
Nowadays Bitcoin has significantly plunged in price, but it is still traded above the mark established for a troy ounce of gold. Yet risks associated with crypto-assets are higher as well, therefore until today a vast majority of investors prefer to hedge funds against losses in less volatile commodity, namely gold.
However, one cryptocurrency-focused venture capitalist thinks that regardless of previous misfortunes Bitcoin will eventually one-up a fundamental store of value.
Lou Kerner, co-founder of CryptoOracle, which provides cryptocurrency advisory services and operates a venture fund focusing on decentralized technologies, believes Bitcoin might actually be better than gold in certain areas and attributes.
Although, Kerner did not list any specific features, it is safe to assume that he believes Bitcoin’s ease-of-use, immutability, digital nature, and others as reasons why it is preferred by some over gold. Additionally, the co-founder highlighted the importance of gold to human history but stresses that its time is up as the leading store of value. He stated:
“Gold has emerged as the global store of value and it has held that position for literally a couple thousand years — that’s an awesome run. So now we have something (Bitcoin) that we think may be functionally much better than gold. So we expect that over time — not in a day, not in a week, not even in 5 years, — for some of the people using gold as a store of value to switch to Bitcoin.”
Kerner ended up by comparing Bitcoin to the junk bond used by speculative traders in order to win much higher yields with relatively higher default risk in relation to investment-grade bonds. Both of the assets were not accepted when they first came into the light. It took roughly 40 years for junk bonds to become a normal tradable contract on the market.
He believes that it might be the same thing for Bitcoin as he expects it to take years to convince those who are hesitant to change that cryptocurrencies underpinned by the robust blockchain technology are the next big thing.
Notably the anxiety raised over a downgrade of traditional economic values does not stop on gold, indeed there are public figures saying the U.S. dollar has to be the next milestone on cryptocurrency widespread adoption. As recently reported by Coinspeaker, Robert Kiyosaki and Kim Dotcom have made a sharp attack on the national currency of the United States calling it a scam. Both further expect cryptos to take over fiat currencies.
The post Bitcoin Will Dethrone Gold as the Global Store of Value, Says CryptoOracle’s Lou Kerner appeared first on CoinSpeaker.
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