For many average Joes, Bitcoin’s use case is viewed as nebulous, a concept squirreled off in the ether by crypto’s pundits. Yet, a leading investor took to Bloomberg to accentuate that Bitcoin (BTC) is fundamentally a store of value (SOV), and one that is even better than gold, the de-facto king of investments for millennia.
Bitcoin Is Fundamentally Better Than Gold
Prominent venture capitalist Lou Kerner, the founding partner of CryptoOracle, sat down with Bloomberg on Sunday to eulogize the flagship cryptocurrency. When asked about value propositions, the investor claimed that Bitcoin has “the opportunity” to replace and oust gold, which sports a cumulative market capitalization of $8 trillion, as the “dominant store of value.”
Kerner even noted that if BTC fails to surmount the powerhouse that is gold, there is potential for the asset to appreciate dramatically. Yet, the CryptoOracle partner shunned the idea that gold isn’t on its way out, simply quipping that holding BTC is “just a better way to store your value.”
The CryptoOracle founder isn’t the only industry insider to laud BTC as a better alternative to gold. Ryan Selkis, CEO of crypto’s go-to resource, Messari, claimed that Bitcoin is a great hedge against “inflationary recession.”
Selkis, who tenured at J.P. Morgan prior to 2008’s Great Recession, noted that “at some point,” capital markets will begin to deflate, as asset inflation wanes. Continuing to paint a harrowing picture for centralized assets, namely stocks, government bonds, and fiat, the Messari chief noted that investors will “flock” to stores of value, like a digital gold, in trying times. As it stands, the digital embodiment of gold is best represented by Bitcoin, and as such, BTC would likely see an influx of buy-side volume as consumers lose faith in traditional markets.
Related Reading: Steve Wozniak: ‘Only Bitcoin is Pure Digital Gold’
The Bloomberg host subsequently questioned Kerner about crypto’s decline throughout 2018. The Bitcoin proponent, citing Amara’s Law, claimed that the impact of new technological paradigms, like the advent of the Internet is overestimated in the long run, but underestimated in the short-term. Kerner added that BTC, coupled with the rest of its crypto asset brethren — innovations more revolutionary than personal computing and the Internet in his eyes — are, and will continue to be subject to this lesser-known philosophical law.
Yet, the interviewer, approaching the matter with skepticism, wasn’t poised to pounce on this idea. And as such, he asked if the days of BTC at $20,000 are long gone. CryptoOracle’s chief, maintaining his bullish outlook, noted that while gold’s 5,000-year run is undoubtedly impressive, Bitcoin is “well on the path” to overtake the precious metal. And as consumers continue starting to come to the realization that gold underperforms Bitcoin in a number of categories, including portability, ease-of-use, divisibility, and scarcity, Kerner explained that BTC could easily surpass $100,000 apiece.