Many people consider that Bitcoin is better than gold as a store of value. Tyler Winklevoss from Gemini thinks that the difference between these two assets is huge.
The founder of the Gemini Exchange, Tyler Winklevoss, believes that Bitcoin “is better gold than gold itself.” According to his judgment, the foremost cryptocurrency on the market is the best store of value that has ever existed.
Even though gold has historically fulfilled a role as a haven of value, Bitcoin is doing it better. Besides, the precious metal cannot match the features of the cryptocurrency in terms of economy, security, and speed, among others.
This is an open and heated debate; proponents of gold argue that all “stores of value” that have existed, except for gold, have collapsed. They also consider that the same will happen to cryptocurrencies.
Why Bitcoin Is Better Than Gold
Tyler Winklevoss thinks that gold is better than gold. On his Twitter account, he expressed his opinion on this issue. He said that “Bitcoin is better to be gold than gold, not only in the incremental way, but also in an order of magnitude 10 times greater.”
The momentum of the pioneering cryptocurrency has been so strong since its creation, just over 10 years ago, that its value has constantly increased. Its price has reached all-time highs on many occasions, and everything indicates that this trend to appreciate will continue.
This feature of Bitcoin has led investors to decide to buy it as a better store of value than gold itself. For centuries, the precious metal has unquestionably fulfilled this role.
However, the novel technology of cryptocurrencies seems to make them compete with gold. The precious metal may not fit into the new infrastructures, with the arrival of a new digital age.
There Should Not Be Competition
There is great competition between gold proponents and Bitcoin enthusiasts over which of the two is a better store of value. However, many others consider that this competition should not exist.
A cryptocurrency trader, identified as NebraskaGooner, stated that both gold and Bitcoin are stores of value. He added that investors will use one or the other, depending on their choice.
Winklevoss disagrees with the latter and shows details about Bitcoin’s supposed superiority over gold. On a chart that he posted on his Twitter account, Bitcoin dominates 6 safe haven categories out of 7, compared to gold.
Gold outperforms the cryptocurrency in market capitalization, at USD 9 trillion. In this sense, capitalization of about USD 200 billion completely overshadows Bitcoin.
Concerning other categories, such as scarcity, durability, portability, divisibility, storage, and difficulty to counterfeit it, Bitcoin outperforms gold.
Bitcoin as a Store of Value
For years, Bitcoin proponents have been claiming that their digital currency is better than gold, but there have always been doubts. In 2020, due to the pandemic and the impressive recovery of Bitcoin after the first economic hit, dozens of investors started to act.
Tudor Jones and other professional Wall Street investors have started buying Bitcoin “en masse”. The price of the cryptocurrency has remained consistent above USD 10 thousand.
The option is open for investors who want to use the pioneering cryptocurrency as a refuge or store of value.
By Willmen Blanco
