Why Bitcoin Will Never Surpass The Market Cap Of Gold
December 28 2021 - 12:00PM
NEWSBTC
Bitcoin has been pitted against gold at various turns since the
digital asset started going mainstream. Enthusiasts have finally
settled on referring to the former as ‘digital gold’ while
continuing to push that bitcoin will replace gold as the default
store of value in the coming years. However, not all bitcoin
supporters seem to share this school of thought despite the asset’s
growth. Billionaire Ray Dalio is a supporter of bitcoin and has
been vocal about his support for the digital asset at various times
in the past, but it seems that Dalio does not believe that bitcoin
will replace gold. In a recent podcast episode with Lex Fridman,
the billionaire investor shares some insight into both assets and
why he believes bitcoin cannot surpass gold in terms of market cap.
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Michael Saylor Holds $1 Million Bitcoin Is Impossible Talking to
Fridman, the billionaire laid out his reasons why bitcoin will be
unable to replace gold. He points to the traceability of bitcoin
and compared this to gold which he says is untraceable as it is not
connected. Furthermore, gold is a universally recognized store of
value while only a small percentage of the world is estimated to
use bitcoin as an investment and a store of value. He explains that
gold still maintains the lead ahead of bitcoin which he does not
yet believe will become the apex or the universally accepted form
of money. Gold, for one, has been around for thousands of years and
is still an accepted form of money or store of value. BTC falls to
$49K | Source: BTCUSD on TradingView.com For the reasons that he
outlined, Dalio does not believe that bitcoin will ever be able to
surpass gold. Furthermore, he explains that he does not believe
that bitcoin will reach the price page of $1 million which some
bitcoin maximalists have pushed in recent times. Still A Strong
Contender For Gold Dalio did not completely dismiss how valuable
bitcoin is though. The billionaire lauded bitcoin by proclaiming
that the digital asset has proved itself despite not being able to
serve as a currency due to its volatility. The digital asset has
proven to be a safe way to invest as it has never been hacked and
continues to operate according to its original programming. Related
Reading | Billionaire Ricardo Salinas: Forget Fiat, Buy
Bitcoin Bitcoin Instead “It has proven itself. It has not been
hacked, it has operated in an amazing way over that 11 years to be
probably the most exciting topic among a lot of people,” said
Dalio. ”It has been used and is now obtained the status of having
imputed value.” The billionaire also revealed that bitcoin ranked
highly on his list of assets that he considers to be strong
competitors for gold. He still maintains that gold is still his
favorite investment but has not written off bitcoin from the
running either. A few months ago, Dalio had revealed that he held a
small portion of holdings in bitcoin, and had added ethereum to his
stash too. Featured image from Bitcoin News, chart from
TradingView.com
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