Vitalik Buterin Supports Crypto Investments Over Gold
The co-founder of the world’s second-largest crypto Ethereum (ETH), Vitalik Buterin, has disclosed how virtual digital assets like crypto and NFTs are becoming more popular and gaining more value than traditional assets such as Gold.
He made the statement while discussing with Zach Weinersmith, the author of Soonish. Zach Weinersmith asked Buterin about the advantages of crypto and other virtual digital assets over Gold.
Buterin replied that crypto and other virtual digital assets are a “better bet” than traditional assets like Gold and that it has less adoption overall. The Ethereum co-founder added that Gold is tough to use and highly inconvenient in terms of pricing.
Buterin further said that safe storage means, such as multisig, crypto wallets that need many signatory parties to allow a buy or sell order, are not being used by Gold. There is a long, raging argument among investors searching for the most reliable asset to purchase as a good investment, whether it should be crypto or Gold.
As the debate for safe-haven assets continues to grow in the face of the current macroeconomic climate, Bitcoin (BTC) and Gold’s correlation rose to a 40-day high last week.
Based on a new analysis by Bloomberg analyst Mike McGlone, since ETH may have experienced a better correlation with stocks, Gold, and treasury bonds are likely to follow Bitcoin’s direction.
Some believe the S&P 500 index and BTC correlate closer to 100%. However, other IMF economists said that the correlation between the crypto and equity market in some parts of the world has increased by ten times.
Vitalik: Crypto Volatility Will Stabilize Like Gold
Although the Ethereum CEO doesn’t see Gold as a better investment than Bitcoin, the volatility of BTC keeps increasing. However, he believes it will stabilize like Gold.
During his interview on the state of crypto markets and the future of the blockchain industry, Buterin said that crypto’s volatility would slow down like Gold.
He also spoke about proof of stake, proof of work, and the slowness of Bitcoin holders to embrace the volatility. Also, while speaking at an interview with blogger Noah Smith, Vitalik admitted he was surprised that the recent crypto bear season hadn’t happened sooner than it did.
He added that he knew the prices of cryptos would drop when it was high but didn’t know exactly when. However, he said that the virtual digital asset is behaving as it should.
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