Big surprise! The World Gold Council (WGC) has claimed that crypto assets, even Bitcoin (BTC), aren’t suitable to replace precious metals. Yet, a number of key industry pundits have overtly begged to differ.

Gold Lovers Love Gold

According to CoinDesk, who obtained a report from the Gold Council, a market development organization centered around gold that is based in the U.K., some incumbents are hesitant to admit that cryptocurrencies will oust precious metals.

The group claims that gold is “very different” from cryptocurrencies, citing the differences in their price volatility, market liquidity, and regulatory status.

WGC claimed that gold’s value has appreciated by 10% annually on average since Nixon dropped the standard, introducing the newfangled system that the Federal Reserve employs. The flagship crypto asset, on the other hand, has purportedly been “extremely volatile,” often touting volatility readings that are ten times that of gold. Thus, the Brit-run entity concluded that BTC isn’t a viable medium of exchange, “let alone a store of value.”

The fact that Bitcoin trading volumes are less than 1% of that of the entirety of the gold market, along with the sentiment that the crypto remains untried in testing environments, also allowed WGC to underscore its point.

Further backing its claim, the WGC researchers noted that as global “stock markets experienced their worst quarter since 2009 (in late-2018),” cryptocurrencies, which had the opportunity to “demonstrate” gold-esque qualities, fell even harder than the stock market. And as such, the conclusively World Gold Council determined that “cryptocurrencies behaved like risky assets and fell while gold rallied.”

Yeah, No — Maybe Bitcoin Stands A Chance

While the council seems to be sure that cryptocurrencies have no future as a digital store of value, some have begged to differ.

In response to the article, Ari Paul, the head of BlockTower Capital, joked that until he can get Bitcoin stuck in his teeth (referring to gold leaf), the precious metal ousts its digital (not so) counterpart.

Outside of the context of this report, many pundits in this nascent industry have claimed that they’re unequivocally sure that BTC is much like gold.

In a comment issued to Bloomberg TV’s Middle East branch, Novogratz, the founder of crypto merchant bank Galaxy Digital Holdings, remarked that just as each element on the periodic table corresponds to an atomic number, Bitcoin is the only viable store of value in the cryptocurrency landscape. The former Goldman Sachs partner even noted that Bitcoin’s slow block times and low transactional throughput just accentuate that it is like gold, likening storing the cryptocurrency to how precious metals are kept in Fort Knox.

Even Nick Szabo, a contender for being the face behind the Satoshi Nakamoto moniker, had made comments that the cryptocurrency has many values that make it resemble the precious metal. In a surprising comment made at the inaugural Israel Bitcoin Summit, the American cryptographer noted that central banks may look into replacing their gold holdings for Bitcoin, especially due to the former’s “physical vulnerability.”

Photo by rawpixel on Unsplash

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