Gemini chief executive officer Tyler Winklevoss noted in a recent tweet that he sees Bitcoin as “gold 2.0.” Winklevoss said that the digital currency “matches or beats” gold across the board. According to him, the only edge that gold has over BTC is a “3,000-year headstart.”
Bitcoin is gold 2.0. It matches or beats gold across the board. It’s market cap is ~140bil, gold’s market cap is ~7tril. Do the math!
— Tyler Winklevoss (@tylerwinklevoss) May 16, 2019
Factual information can back this up. Investment firm Grayscale Investments argued that unlike the metal, BTC is scarce and limited at 21 million units; BTC is portable and divisible through digital technologies; and BTC is decentralized and verifiable through the Internet. On the other hand, gold has centralization risks, unlimited supply, incapacity to be quickly divided and sent, and concerns about its purity.
Grayscale laid out comparisons between bitcoin and gold when it comes to following factors:
This is probably the reason why Grayscale has started to encourage investors to “drop gold.” The company previously introduced an extensive ad campaign that described BTC as “gold 2.0.” In a 45-second advertisement, two youngsters literally dropped gold as those surrounding them struggle with the heavy, burdensome commodity, and then running to a society centered on the use of digital assets.
Imagine what will happen in a no-gold world. As the world realizes the potential of Bitcoin, people will look to store their value in BTC instead of gold. Seattle-based cryptocurrency investor HodlWhale said that a world where Bitcoin has assumed the total value of gold in circulation would witness BTC priced at $350,000.
HodlWhale’s figure is not actually baseless. At present, all the gold in circulation is valued at roughly $7.83 trillion, while all BTC has a valuation of only $94 billion. Industry analytics and research group Crypto Voices said that if Bitcoin was to totally displace the value of gold, it is estimated that the value of Bitcoin would swell into $450,000.