ETH founder Vitalik Buterin: 3 Reasons why crypto beats gold November 2, 2022
ETH founder Vitalik Buterin: 3 Reasons why crypto beats gold <br><br><br>
ETH founder Vitalik Buterin: 3 Reasons why crypto beats gold
Vitalik Buterin, the co-founder of Ethereum, has criticized gold against blockchain-based cryptocurrencies. In a response to a tweet, he called gold “incredibly inconvenient” and “difficult to use particularly when transacting with untrusted parties” as compared to crypto.”
ETH founder claims that investment in cryptocurrency is far better than investing in gold. He also opined how gold does not “support safe storage options like multisig” and further said, “gold has less adoption than crypto, so crypto is the better bet.”
Vitalik shared his views on the subject in response to the New York Times bestselling author of Soonish, Zach Weinersmith, who questioned the benefits of crypto over gold, “So, the only argument I’ve heard about crypto that makes sense within the believer’s own framework is that they don’t want a centralized authority for money. In that framework though, why not just go with gold?”
This isn’t a new viewpoint from Vitalik, who has been backing crypto in the same debate since 2014.
Since 2014, the ETH co-founder has been blackening crypto on the same stance, he said in a blog post, “Bitcoin itself may well serve as a unique Schelling point for a universal fallback asset, similar to the current and historical functioning of gold.”
Hayden Adam, Uniswap’s founder also commented in the same discussion, he backed the Buterin stance by saying that precious metals that are mined from asteroids are at risk of losing their value in the near future.
Here are a few reasons why crypto beats gold according to Vitalik Buterin
Despite facing a huge slowdown, digital assets see a massive selloff in the crypto ecosystem. The world’s largest cryptocurrency by market cap, Bitcoin, trading at $20,374.91 was last down 70.5% from its highest record of $69,000 in the last year. Similarly, Ethereum was down by 68% from its highest record of $1,562.51 to $4,878 last year.
Whereas, gold remains one of those few assets which is less volatile and sees relatively restrained losses last year as compared to top crypto assets. In 2022, this yellow metal per ounce value has oscillated from a high of $2,043.30 and a low of $1,626.65, with an average closing price of $1,811.11.
According to Vitalik Gold is “incredibly inconvenient”:
- It’s difficult to use, particularly when transacting with untrusted parties.
- It doesn’t support safe storage options like multisig.
- Gold has less adoption than crypto, so crypto is the better bet.
This is not the first time Buterin criticized gold. In one of the blog posts published in 2020, Vitalik Buterien called gold “lame.”