Buterin Says Crypto Is A Better Bet Than Gold

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As an investment idea, the idea that Bitcoin (BTC -11.14%) is “digital gold” is coming back. People didn’t want to hear that Bitcoin was digital gold when Bitcoin’s price was going down, and the cryptocurrency market was falling apart.

No one wanted to hear that Bitcoin was digital gold when the cryptocurrency market was going down. Many sincere people invested in this cryptocurrency at immediate-edge.pl, and they are now reaping millions of profits from it.

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This happens when sales on the cryptocurrency market seem to have reached their highest point. Vitalik Buterin is one of the people who helped come up with the idea for Ethereum (ETH). He thinks cryptocurrency is a better investment than gold and is already more widely accepted than a physical asset.

Buterin said this in response to Zach Weinersmith, who said that people should buy gold instead of Bitcoin (BTC) because gold already shows that crypto supporters don’t want one group to control money. Zach Weinersmith made a suggestion, and Buterin’s comment was his answer. Zach Weinersmith had given an idea, and Buterin’s comment was a response to it.

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Vitalik said that gold is hard to use and deal with, especially if you don’t trust the person you’re dealing with. He also said there is no safe way to store gold that allows more than one person to control access like there is with multisig cryptocurrency wallets.

Vitalik has said that Bitcoin is better than gold more than once. In 2018, he said in a tweet that Bitcoin is a better way for people and society as a whole to store money than gold. This is how people talk about Bitcoin.

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People in the financial market have had heated arguments about gold and cryptocurrencies for over a decade. Even though the price of gold has been going down since the start of the year, this is still true.

In the meantime, more and more people are using cryptocurrencies, so their market capitalization is slowly growing bigger than gold. This is because it costs less to send cryptocurrency than it does to send the gold. Even though Bitcoin didn’t do well in 2018, more and more investors are considering it a place to put their money.

After the former Prime Minister, Liz Truss, released a lousy mini-budget, there was a big increase in the amount of trading between Bitcoin and the British pound. The amount went up because the price of Bitcoin went up a lot.

When the value of the pound sterling fell sharply in September, there were 233% more transactions between bitcoin and the pound sterling. The value of the pound sterling dropped sharply during that month, so this happened.

Read More: Is Bitcoin a good Long-term Set Investment Strategy?

Are digital currencies becoming more like gold?

Buterin Says Crypto Is A Better Bet Than Gold

The idea that Bitcoin is “digital gold” was accurate as long as Bitcoin’s price didn’t change like the prices of other assets. This was because Bitcoin didn’t seem like any different kind of asset. On the other hand, we learned in 2022 that the price of Bitcoin is at least somewhat tied to the market as a whole.

In other words, if the price of stocks goes down, bitcoin’s price may also go down. This made it less appealing to people thinking about investing at the beginning of the year.

But if we look at how unstable the financial markets are right now, we can see that things are getting worse. This is something that should give us a lot of worries. Most people agree that Bitcoin has never been less unstable than it is now. At this point, some people on the market even call Bitcoin “boring.”

Second, the link between bitcoin and gold is much more vital now than when it was first noticed. After forty days, the link between Bitcoin and gold peaked. This is a very small sample, but it shows that traders worldwide are trying to figure out what’s happening. It also shows that the relationships between the different types of assets may be changing.