CryptoOracle Co-Founder Claims Bitcoin Better Than Gold
Can Bitcoin (BTC) be better than gold in the digital age? CryptoOracle Co-founder Lou Kerner thinks so.
Some Gold Users Will Likely Switch To Bitcoin.
This is the message passed on by CryptoOracle co-founder Lou Kerner told CNBC during his recent interview.
Bitcoin viewed as the digital gold
Ever since Bitcoin was created a decade ago, there has been confusion as to the primary function of the currency. Some view it as a currency that can be used for the exchange of goods and services while others view it as a commodity.
There are some, however, who view it as a store of value, a function that Gold also holds. Gold has been the most valuable metal on earth for thousands of year. It has been a way for individuals and groups to store value across a variety of settings, countries, and eras.
The invention of the internet and the emergence of Bitcoin has led to some predicting that the time is up for gold to serve as the primary global store of value. Bitcoin is expected to take its place.
The two assets have been likened to each other by analysts and industry experts. Bitcoin has even been tagged the digital gold due to the similarities it shares with the real gold.
Bitcoin better than gold
Lou Kerner, a co-founder, and partner at CryptoOracle, however, doesn’t see it that way. He stated during his interview with CNBC that Bitcoin might actually be better than gold in certain areas and qualities.
He complimented gold for its importance to human history but believes that its time is up as the leading store of value. He stated:
Gold has emerged as the global store of value and it has held that position for literally a couple thousand years — that’s an awesome run. So we now we have something (Bitcoin) that we think may be functionally much much better (than gold). So we expect that over time — not in a day, not in a week, not even in 5 years, — for some of the people using gold as a store of value to switch to Bitcoin.
This statement reveals two interesting things about Bitcoin’s role as a digital gold. The first one is that Bitcoin could be inherently better than gold.
Even though Kerner didn’t list any specific features, it is safe to assume that he believes Bitcoin’s ease-of-use, immutability, digital nature, and others as reasons why it is preferred by some over gold.
The second point is that Bitcoin and other cryptocurrencies might have begun eating at the market share that gold has carved out for itself over thousands of years.
Gabor Gurbacs of the Ethereum World News reported that the director of digital asset strategy at VanEck/MVIS, claims that Bitcoin price could be more than $20,000 if the digital asset become successful as digital gold. Gurbacs stated that:
Investors do refer to Bitcoin as a form of digital gold and gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — Bitcoin has upside. Bitcoin is used as digital gold today. It’s a de-risk asset. Basically, if someone wants to outlay systematic risk, then one would go to access gold or digital gold.
Bitcoin facing challenges like a junk bond
Kerner ended his interview by comparing Bitcoin to the junk bond. Both of the assets weren’t accepted when they first came into the limelight. It took roughly 40 years for junk bond to become a normal tradable asset/contract on the market.
He believes that it might be the same thing for Bitcoin as he expects it to take years to convince those who are hesitant to change that cryptocurrencies (and blockchain) are the next big thing