Ethereum co-founder Vitalik Buterin has criticized gold as a decentralized alternative to money, saying it is “pretty inconvenient” and “difficult to use”, especially when transacting with untrusted parties when.
Vitalik Buterin also pointed out that gold “does not support secure storage options like multi-signature,” while stating that “gold adoption rates are lower than cryptocurrencies, so cryptocurrencies are a better option.”
Vitalik Buterin’s above statement is mainly in response to the opinion of American cartoonist Zach Weinersmith, who said that the only claim he has heard about cryptocurrencies is that “believers will feel in their own framework that ‘they don’t want money is centralized power’, which is It’s a reasonable idea.”
Zach Weinersmith went on to say: “With that frame of mind, why not just go for gold?”
This is not a new argument for Vitalik Buterin, who has supported cryptocurrencies in the same debate since 2014.
Vitalik Buterin said in a blog post:
Bitcoin itself may well serve as a focal point (Schelling point) for a universal dependable asset, similar to the current and historical function of gold.
The so-called Schelling point is, in game theory, the tendency of people to choose without communication, and the choice may be made because it seems natural, special, or related to the chooser.
Uniswap founder Hayden Adam also joined the discussion, emphasizing a theory that in the future, precious metals mined from asteroids could cause the price of precious metals currently on Earth to plummet.
On this occasion, there is more and more discussion about gold and cryptocurrencies as stores of value.
A recent report from Bank of America Securities pointed out that Bitcoin is now highly correlated with the price of gold, which means that some investors may use Bitcoin as a “safe-haven asset” against uncertainty.
Gold has traditionally been used by institutional or general investors as a tool to protect portfolio performance during downturns.
Gold prices have been significantly less volatile than Bitcoin in the near term. Gold prices soared to $2,043.30 an ounce in March, but they also fell to a low of $1,626.65, with an average price of $1,811.11.
However, Bitcoin tumbled from $67,617 to $19,268 during the year.