The long history of Gold as a store of value and the fact that it is a natural resources, have been regarded as a reason for its uniqueness when compared with “corrupted” Bitcoin, an analyst has said.
In a conversation with Kitco News at the 121 Mining Investment conference in New York, Chris Mancini, analyst of Gabelli Gold Funds, said the Gold is an asset that cannot be changed and created at will like other assets.
He said cryptocurrency i.e. Bitcoin, Ethereum, cannot be compared with precious metals, because one is man made, the others are God’s.
Mancini emphasized that Bitcoin is corrupted and Gold, a creation of God cannot be corrupted. While noting that Bitcoin can be used as a payment means, Mancini said that does not make it a great investment.
Bitcoin not Used by Central Banks
The analyst said Bitcoin is not being used by reputable financial institutions and central banks, contrarily banks buy Gold.
He said: “Global central banks are not going to buy bitcoin, so the Chinese central bank is buying gold and the Russian central bank is buying gold, they’re not going to buy bitcoin.”
He said the fact that Bitcoin can be replicated with ease washed away the belief that it can be used as a store of money.
Mancini is pissed off with the Bitcoin fork concepts which can never happen to Gold and other precious metals.
“So there’s Bitcoin Cash, or Bitcoin Gold that’s been created off of bitcoin, so the concept of coming in and buying a gold coin down the street, putting it in my sock drawer and then having another gold coin one day, that’s crazy, that just can’t happen, but with bitcoin it can”.
The debate on the superiority of Bitcoin to Gold has been up in the air for some years now, in fact since the creation of cryptocurrency.
Bitcoin is Growing
What baffles a large number of cryptocurrency enthusiasts is the increasing growth of Bitcoin and the way institutions are venturing into the space.
Meanwhile, in the next few days, TRON’s Justin Sun with other cryptocurrency leaders will be enlightening Warren Buffet, one of the most success investors in the world, on Bitcoin.
If Warren, who has been a critic of Bitcoin, finally accepts the concept, there is no doubt that it may impact the whole space and increase the number of investors.
Also, the creation of Facebook’s cryptocurrency instills confidence in the crypto community that some digital currencies, if not all, have come to stay, and definitely Bitcoin is among.