Bitcoin versus Gold – Bitcoin is often compared to gold for its similar role as a store of value, especially in the face of weakness in fiat currencies. While some believe that Bitcoin has the potential to surpass the precious metal one day , others like the CEO of Forbes continue to denigrate the king of cryptos.
Is Bitcoin not a good store of value?
Steve Forbes is the current CEO of Forbes Publishing House and its famous eponymous business magazine.
In a video seen on his company’s YouTube channel , the Forbes executive couldn’t help but comment on how he doesn’t see Crypto Bank as the new digital gold . Indeed, according to Steve Forbes, the only reason that would increase the price of BTC would be the fear for the world economy of seeing a collapse of currencies fiats by hyperinflation .
„The biggest stimulus to the bitcoin boom is the fear that the Federal Reserve and other central banks are printing too much money . “
At the very least, he acknowledged that bitcoins can not be printed at will like the dollar, the euro and other state currencies!
Bitcoin is “ not close “ to replacing gold
If Steve Forbes is so skeptical towards Bitcoin is mainly because of the excessive volatility of its course, while gold is a sort of absolute reference :
“Bitcoin remains too volatile to be a long-term store of value like gold traditionally does (…) When you see the price of gold fluctuate in dollars, what you are actually seeing is the dollar’s value. -even that changes ” .
This would already be enough not to make Bitcoin a good safe haven for the CEO of Forbes but, in addition, he makes another more “original” criticism of the king of cryptos. According to him, the fact that the total amount of BTC is fixed is a bad thing:
“(…) The arbitrary limit of the total supply of bitcoins will seriously hamper its future usefulness (…) while gold is scarce, but not too scarce” .
A rather strange argument since, even if currently it is true that the production of gold represents each year an increase of 2% of the existing reserves , what will be in 2140 , at the same time as the last BTC will be mined ?