Will Bitcoin Replace Gold?

John Pfeffer, who is a serial entrepreneur, investor and current partner at Pfeffer Capital has spoken at the Sohn Investment Conference, which took place on Monday 23rd April, where he declared that Bitcoin was the first viable replacement for gold.

He said that he is anticipating the price of Bitcoin to rise to at least $90,000, although he does say that this figure could be significantly higher. Despite the rise of 3.37% in the last 24 hours, Bitcoin has a way to go to reach this figure, as it is currently trading at just over $9,000.

The entrepreneur, who wrote a book titled ‘An (Institutional) Investor’s Take on Cryptoassets’, made a number of bold statements which went further than his high price prediction for Bitcoin, declaring that the oldest cryptocurrency was ‘better than gold’. He noted that decentralisation and censorship resistance were core pillars of Bitcoin’s prominence, and believes that the most popular cryptocurrency is a lot easier to store and transact with than gold.

He compare the two, saying that is just 25% of the foreign gold reserves got replaced with Bitcoin, the cryptocurrency market would receive a staggering $6.4 trillion. Astonishingly, he is not the first to hint that Bitcoin could eventually replace gold. At the end of last year, the Winklevoss twins famously said;

“Bitcoin matches or beats gold across the board…Taking Bitcoin in isolation…we believe Bitcoin disrupts gold. We think it’s a better gold, if you look at the properties of money. And what makes gold gold? Scarcity. Bitcoin is actually fixe in supply so it’s better than scarce…it’s more portable, its fungible, it’s more durable. It sort of equals a better gold across the board.”

What is noted though in both of their statements is that they are completely isolating Bitcoin from all other cryptocurrencies, and what’s more is that they are all adamant that they should not be intermingled. What is the reason for this? Pfeffer was quite concise in his reasonings for this, bluntly saying that he believed that;

“…the majority of crypto assets are bad bets.”

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