The co-founder of one of the leading cryptocurrencies is sharing reasons why he supports crypto over gold as an alternative to money.
What Happened: Ethereum (CRYPTO: ETH) co-founder Vitalik Buterin has been a supporter of cryptocurrency for years. It won’t come as a huge surprise that Buterin told a user on Twitter that cryptocurrency is better than gold. What could be surprising are the reasons Buterin gave.
Cartoonist Zach Weinersmith said that the only argument they have heard about crypto that makes sense is the argument against centralized authorities for money. The user then asked if this is the reason, “why not go with gold?”
Buterin, one of several founders of Ethereum, responded with several reasons why he supports crypto over gold as a better bet.
“Gold is incredibly inconvenient. It’s difficult to use, particularly when transacting with untrusted parties. It doesn’t support safe storage options like multisig. At this point, gold has less adoption than crypto, so crypto is the better bet,” Buterin tweeted.
The tweet from Buterin highlighted three key factors that could make cryptocurrency a better bet for the future and a better alternative to the current financial system.
Cryptocurrency is more convenient than gold, argues Buterin, with users being able to have their cryptocurrency stored in a number of places and not having to store a physical item like gold.
The Ethereum co-founder said gold does not offer safe storage options like multisig that make is safer. Having multisig options requires cryptocurrency transactions to have multiple private keys to authorize a transaction.
There are thousands of locations in the United States and around the world that accept cryptocurrency as a form of payment, with Bitcoin (CRYPTO: BTC) being the most popular cryptocurrency accepted. Gold is not as widely accepted as a form of payment at retail locations or online transactions around the world.
Related Link: Is Gold A Good Investment
Why It’s Important: With inflation rising and investors looking for alternate places to park their cash and investments, a battle between gold and cryptocurrency could be brewing.
Gold has often been viewed as a hedge against inflation and a safe asset over time. With the stock market and crypto markets in bear markets, gold could be an asset for some to consider.
Buterin’s comments are more about the use cases for cryptocurrencies and not the store of value. Investors looking for a store of value during the economic downturn may consider both gold and cryptocurrency. Investors looking for an alternative to traditional money may consider cryptocurrency, given the factors listed by Buterin above.
The price of gold has experienced less volatility over the last year, while leading cryptocurrencies have seen wide swings.
Bitcoin has traded between $17,708.62 and $68,789.63 over the last year.
Ethereum has traded between $896.11 and $4,891.70 over the last year.
Gold has traded between $1,633.40 per ounce and $2,043.30 per ounce over the last year.
Read Next: Where Can I Spend My Bitcoin
Photo: Courtesy of TechCrunch on flickr
