Buterin’s statements came in response to American cartoonist Zach Weinersmith, who said that the only argument he has heard about crypto “that makes sense within the believer's own framework is that they don't want a centralized authority for money.”
He added: “In that framework though, why not just go with gold?”
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
Buterin has held this view for a long time and has spoken about it in debates since 2014. “Bitcoin itself may well serve as a unique Schelling point for a universal fallback asset, similar to the current and historical functioning of gold,” he said in a blog post.
Uniswap founder Hayden Adam also jumped into the discussion and theorized that in the future, precious metals mined from an asteroid could potentially cause the value of precious metals to plummet.
Gold also has the risk of huge centrally controlled inflation due to asteroid mining— hayden.eth 🦄 (@haydenzadams) October 26, 2022
A recent report from Bank of America Securities (BofAS) showed that Bitcoin now has a higher correlation with gold prices, implying that some parties may use it as a hedge against uncertainty or as a “safe haven” asset.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.