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Vitalik Buterin, the co-founder of Ethereum (ETH), recently commented on how digital assets are becoming more widely adopted and, in turn, more useful than traditional assets such as gold.
The Ethereum co-founder replied to a query posted on Twitter by Zach Weinersmith, author of Soonish, on October 26, who questioned the advantages of cryptocurrencies compared to gold. In the reply, Buterin said, “crypto is the better bet” compared to the yellow metal declaring that “gold has less adoption than crypto.”
Buterin retorted that gold is “very difficult to utilize when doing business with persons who cannot be trusted” and “incredibly inconvenient.” He claimed that gold “doesn’t support safe storage options like multisig,” which refers to multi-signature cryptocurrency wallets that need several parties to approve a transaction.
“Gold is incredibly inconvenient. It’s difficult to use, particularly when transacting with untrusted parties. It doesn’t support safe storage options like multisig. At this point, gold has less adoption than crypto, so crypto is the better bet.”
Gold is incredibly inconvenient. It's difficult to use, particularly when transacting with untrusted parties. It doesn't support safe storage options like multisig. At this point, gold has less adoption than crypto, so crypto is the better bet.
— vitalik.eth (@VitalikButerin) October 26, 2022
Crypto vs. gold
Notably, investors searching for the most reliable asset to use as a safe haven have an ongoing heated discussion about cryptocurrencies vs. gold. Bitcoin’s correlation with gold hit a 40-day high on October 22 as the battle for safe-haven asset intensified amid the current macroeconomic environment.
Bitcoin hit a 40-day correlation with gold standing at 0.50 after the value stood at around zero in mid-August. After a stretch during which the cryptocurrency has moved chiefly in conjunction with stocks, this brought Bitcoin into the spotlight as the digital equivalent of gold. Notably, the current environment of rising inflation and interest rates has been detrimental to both types of asset classes.
The author of the personal finance book ‘Rich’Dad, Poor Dad’ Dad’ Robert Kiyosaki, maintaining his stance that the economy is likely to crash, and both Bitcoin and gold can act as a store of wealth. However, Buterin has ruled out the prospect of cryptocurrencies assuming control of the international monetary system.
Although the cryptocurrency industry has seen substantial development and acceptance over the last few years, Buterin said that he believes traditional currencies backed by governments will remain dominant.
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