Bitcoin has been often compared to gold as the two entail similar qualities. Both Bitcoin and gold are considered to be a store of value assets. While gold has been viewed as an age-old investment method, several have been steering towards Bitcoin for the same. Speaking about the same, Steve Forbes, the Chairman and the Editor-in-Chief of Forbes Media appeared in an episode of What’s Ahead.
Bitcoin Not Quite There To Become The New Gold
Touted as digital gold, Bitcoin’s characteristics have pushed the coin to be matched with gold. This year proved to be exceptionally interesting for the coin. After going through a halving the king coin went on to surge by over 160% throughout this year. While several have veered into the market following this price movement of the coin, Forbes believes that it still has a long way to go in terms of taking the place of gold. He added,
“It may well become the new gold, but that day is not yet here for now gold is the best insurance against inflation.”
The volatile nature of crypto has hindered the growth of crypto. Elaborating on the same, Forbes suggested that Bitcoin would fail to embody the role of a long-term store of value asset as it is too volatile. He however agrees that Bitcoin is a good store of value asset, yet he suggests that it shouldn’t be mistaken to be better than gold.
While Bitcoin stands at $19,044.54, Forbes is still inclined towards gold. He pointed out that several crypto enthusiasts fail to see that gold entails an intrinsic value that is greater than anything else on the globe. He added,
“Experience has repeatedly demonstrated for thousands of years that fixing a currency to gold is the best way to achieve monetary stability. We did very well in the gold standard here in the U.S. from the 1790s to the 1970s achieving the highest rates of growth in human history.”