- Bitcoin and gold have been pressing higher after the comments made by Federal Reserve chairman Jerome Powell last week.
- Both assets are up by around 5% since the comments the central banker made.
- Some gold proponents say that gold will easily outperform any other asset in circulation due to the vast amount of monetary stimulus.
- Crypto proponents, even those focused on altcoins, think that Bitcoin will outperform gold, though.
Bitcoin Likely to Outperform Gold, Says EOS Founder
According to Brendan Blumer, the co-founder of Block.one (which itself founded the blockchain EOS), Bitcoin will easily outperform gold in this market cycle.
The crypto pioneer commented that the leading cryptocurrency is intrinsically better than gold, which should allow it to accrue more value over time. Blumer specifically cited BTC’s “inclusive, fair, finite, publicly-verifiable, and self-custodial characteristics”:
“#Gold will perform, but only fractionally as well as #Bitcoin as people continue to understand and prefer it’s inclusive, fair, finite, publicly-verifiable, and self-custodial characteristics. The new generation has already chosen #BTC, and that puts it on the right side of time.”
Far From the Only One That Thinks So
He’s far from the only individual in the industry to have shared such an opinion over recent weeks.
Tyler Winklevoss and Cameron Winklevoss, the co-founders of Gemini and long-time Bitcoin investors, recently wrote the following in a post published to their fund’s website:
“Inflation is coming. Money stored in a bank will get run over. Money invested in assets like real estate or the stock market will keep pace. Money stored in gold or bitcoin will outrun the scourge. And money stored in bitcoin will run the fastest, overtaking gold.”
Like Blumer, the two said that Bitcoin’s characteristics make it a better investment than gold in the current environment.
There’s also Raoul Pal, the CEO of Real Vision and a Wall Street veteran. He commented that Bitcoin will outperform gold likely by an order of magnitude, maybe even two due to the macro factors and the strength of the entire crypto market:
“Most people don’t understand the latter but is simply put, Powell has shown that there is ZERO tolerance for deflation so they will do ANYTHING to stop it, and that is good for the two hardest assets – Gold and Bitcoin. Powell WANTS inflation.”
I know bitcoin and gold are selling off right now and may go further but with Powell today, it tells you they have no desire to raise rates and a skewed desire to print more. That plays to the inherent upside skew in both assets.
I think they both rise over time in inflation 1/
— Raoul Pal (@RaoulGMI) August 28, 2020
Pal, along with others in the industry, believe that this is the market cycle in which the market capitalization of Bitcoin surmounts that of gold.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com EOS Founder Thinks Gold Will Only Perform "Fractionally As Well" as Bitcoin