The EOS Founder believes that gold will perform as well as Bitcoin which is only fractionally as they have both been pressing higher after the comments by the Federal Reserve chairman Jerome Powell last week as we reported in the EOS newsletter previously.
Both assets increased by around 5% since the comments were made and some proponents believe that the gold will outperform any other asset in circulation due to the vast amount of monetary stimulus. Crypto proponents that are mostly focused on altcoins believe that bitcoin will outperform gold. According to Brendan Blumer, the co-founder of Block.one, Bitcoin will outperform gold in the market cycle. The crypto pioneer commented that the number one cryptocurrency is better than gold which will allow it to accrue more value over time as Bitcoin is inclusive, fair, and publicly-verifiable:
“#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.”
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
He is not the only individual in the industry to share this opinion over the past few weeks. Both Cameron and Tyler Winklevoss, the Gemini co-founders and Bitcoin investors wrote on their 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.”
The EOS founder believes that Gold will trade similarly to bitcoin while the twins also believe that Bitcoin’s characteristics make it a better investment in the current environment. Raoul Pal, the CEO of Real Vision also commented that Bitcoin will outperform gold by an order of magnitude and because of the macro factors on the 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.”
Pal, along with many others in the crypto industry, believes that this is a market cycle in which the market capitalization of Bitcoin will surely surpass the one of Gold.
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