Crypto Vs. Fiat Currencies Vs. Gold – Analysts Debate Store Of Value And Forms Of Payment
Since crypto has been gaining popularity, there’s been this debate regarding which in the winner these days between gold and crypto as a store of value.
Also, crypto is fighting fiat currencies with a lot of important voices saying that digital assets are much more viable compared to fiat.
Bitcoin vs. gold – store of value
Billionaire Tim Draper made a prediction a while ago saying that BTC will hit $250k by 2023 and it seems that he’s sticking to what he said.
In a brand new interview with YouTube’s Wendy O, he said that he believed BTC is already a stronger store of value compared to gold.
“Gold is so gone. What would you use gold for when you can store value with Bitcoin? It’s nonsense. But I’m sure a lot of people still do it, and they think of the gold standard as the good coin. But I look at it, and I say, ‘What? You’re comparing Bitcoin to gold?’ It’s like ten generations from when we used gold to transfer value,” he stated.
Crypto as a form of payment
Draper also said that more than being a store of value, BTC will one day be used widely as a form of payment and this is set to happen once its value hits a high enough mark.
On the other hand, PayPal CEO Dan Schulman does not agree to this. During a recent interview with CNBC, he said that he doesn’t believe that crypto can really compete with fiat currencies.
He cited a lack of retail adoption as a primary example of the industry’s struggle to hit the mainstream.
— Squawk Box (@SquawkCNBC) January 23, 2019
He basically sidesteps the use of crypto for remittances, the use of BTC as a store of value as reported by the Daily Hodl.
Here’s what he had to say: “I have always thought that crypto was more of a reward mechanism for implementing blockchain as opposed to really a currency. And we’re not seeing many retailers at all accept any of the cryptocurrencies. But I think the underlying technology is still very interesting.”
Speaking of adoption, Coinbase just made it easier to pay with crypto with the Visa debit card.
Coinbase is a digital currency exchange headquartered in San Francisco, California.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.