Bitcoin is no match for gold, and Steve Forbes tells you so!
Bitcoin versus Gold
Bitcoin is often compared to gold for its similar role as a store of value, especially in light of the weakness of fiat currencies. While some believe that Bitcoin has the potential to one day surpass the precious metal, others like the CEO of Forbes continue to denigrate the king of cryptos.
Wouldn’t Bitcoin be a good store of value?
Steve Forbes is the current CEO of the Forbes publishing house and its famous eponymous business magazine.
In a video on his company’s YouTube channel, the Forbes executive could not help but say how he did not see Bitcoin (BTC) as the new digital gold. Indeed, according to Steve Forbes, the only reason that would cause the BTC price to rise would be the fear for the world economy of a collapse of fiat currencies through hyperinflation.
„The biggest stimulus to the Bitcoin boom is the fear that the Federal Reserve and other central banks will print too much money.
At least he recognized that Bitcoins cannot be printed at will like the dollar, euro and other state currencies!
Bitcoin is „not close“ to replacing gold
If Steve Forbes is so skeptical of Bitcoin, it is mainly because its price is too volatile, whereas gold would be a kind of absolute reference:
„Bitcoin remains too volatile to be a long-term store of value like gold traditionally has been (…) When you see the price of gold fluctuating in dollars, what you see is actually the value of the dollar itself changing.
This would already be enough not to make Bitcoin a good safe haven value for Forbes‘ CEO, but on top of that, he makes another more „original“ reproach to 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 it is currently true that gold production represents a 2% increase in existing reserves each year, what will it be like in 2140, when the last BTC will be extracted?
Perhaps this is why Steve Forbes ends his speech on a slightly less categorical note about the future of Bitcoin:
„As Bitcoin evolves, it may well end up becoming the new gold, but that day is not yet upon us. »
So, Bitcoin, a store of value or not? While the king of cryptomoney may not yet be at the same level as gold (which has a 2,000-year advantage as a currency), it does seem to have the potential to become a digitized form of it, fully compatible with modern times.