Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Bitcoin admin has “stolen the show” from gold, says R. P. Stoeferle, an expert on the metal.
- Stoeferle says bitcoin and gold “are brothers in spirit.”
- However, he believes that Bitcoin has stolen gold’s thunder.
- Stresses that crypto is still a risky asset
- He thinks Bitcoin needs to be differentiated from the rest of the cryptocurrencies because there is a lot of junk.
Many gold advocates have been great critics of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. . Among the arguments are that gold is a physical holding, guaranteed and with a lifetime value, whereas Bitcoin has no hold. However, not all gold experts are enemies of cryptocurrency.
This is the case for Ronald-Peter Stoeferle, managing partner of investment management firm Incrementum AG who also publishes a renowned annual report on gold entitled «In Gold We Trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. Report».
The medium Finews Asia interviewed him and he gave his opinion about the market an area or arena, online or offline, in which commercial dealings are conducted. for Bitcoin and its comparison with gold and fiat money.
“ If fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. currencies were sound, there would be no real investment case for Bitcoin or gold . But our monetary system is anything but sound, said Ronald-Peter Stoeferle in the interview, criticizing the traditional economic system.
When asked why his company Incrementum has funds that mix gold with Bitcoin y criptos, respondió:
“There are more than 19,000 cryptocurrencies and a clear distinction should be made between Bitcoin and the rest. There is a lot of garbage in the crypto universe, 99 percent of the coins will eventually disappear.”
But he doesn’t feel the same way about Bitcoin:
“ Con Bitcoin, por otro lado, la fuerza de la red aumenta día a día. Bitcoin as a monetary technology, as a monetary upgrade of our system, has many similarities to gold. Satoshi the smallest unit of bitcoin with a value of 0.00000001 BTC. Nakamoto, the creator of Bitcoin, understood gold, our monetary system and our financial system very well.
Comparing it to fiat money and the unsoundness of the current monetary system, he added:
“In this sense, the argument for investing in Bitcoin and gold is gaining ground. There is a relative scarcity in the two asset classes, as both have a high stock-flow ratio. This ratio describes the relationship between the existing supply of a commodity and production.”
“Bitcoin is also getting stronger with each holding. Our investors appreciate the concept of combining two alternative currency currency is a medium of exchange that defines value. asset classes into one fund.”
¿Bitcoin es oro 2.0?
The media asked if it is appropriate to call Bitcoin digital gold or gold 2.0 after this year’s collapse. In this regard he said:
“I think it is. But the bottom line is that Bitcoin is still a risk on asset. It correlates with risk appetite. Gold has a 5,000-year history.”
Bitcoin has somewhat stolen the show from gold in recent years in terms of media coverage.
Al respecto, destaca que: “Bitcoin, on the other hand, is still growing. Especially in the institutional sector, much has changed recently for the better for Bitcoin. In the future, Bitcoin could increasingly mature and become a risk-free investment. At the moment, however, this is definitely not the case.”
It also argues that investors in gold and Bitcoin are very different:
“The kinds of buyers are very different. Bitcoin buyers tend to be younger, tech-savvy and often concerned about our monetary system. Many cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. investors who have understood Bitcoin eventually discover gold.”
In addition, the media asks if gold is still contemporary and appeals to younger people:
“As people age, they become more conservative and less risk-averse. Young Bitcoin investors can become convinced gold and Bitcoin holders as they get older. What has stood the test of time is likely to continue”.
B itcoin, gold and vinyl records
When talking about the interest that could arise in gold for young crypto investors, Stoeferle makes a comparison: the new craze among young people to collect old vinyl records. “This so-called Lindy effect can be observed very well with gold and Bitcoin. I don’t see much competition between these two asset classes either. Bitcoin and gold are brothers in spirit “.
He was also critical of gold-backed tokens: “I’m quite skeptical due to low liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. and partly unconvincing business models.”
And it says about gold as a backing: “It serves primarily to hedge already existing purchasing power. Gold isn’t there to get rich quick . On the other hand, you don’t get poor quickly with gold. Gold is a defensive and conservative asset, it does its job well and preserves purchasing power”.
Invest investing is when you put money in a financial scheme with the intent of making a gain. in gold or Bitcoin ?
When asked what he thought was the best asset to invest in going forward, Stoeferle said:
“Our Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. & Physical Gold Fund strategically invests 75% in gold and 25% in Bitcoin through physical investments, futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. and options. I believe this approach is sensible. If Bitcoin continues to establish itself, prices are likely to rise over the next few years.”
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