As interest continues to surge for bitcoin, could it soon become the new gold? According to Goldman Sachs, the answer is no.
As bitcoin’s price has surged, gold has suffered.
Tyler and Cameron Winklevoss, better known as the Winklevoss twins, expect the market valuation of bitcoin to surpass trillions of dollars in the upcoming years.
The poll of former Texas congressman Ron Paul participated by more than 43,000 social media users has shown that the majority of respondents would rather have bitcoin over gold, US Treasury Bond, and the US dollar.
Private investor gold trading fell by a third in October as Google searches to ‘buy bitcoin’ overtook yellow metal searches worldwide, according to BullionVault.
Adrian Ash, the director of research at BullionVault, the physical gold and silver market for private investors online, said that the amount of gold changing hands shrank by nearly one-third in October compared to the previous 12 months, down by 31.5 percent. Ash reports that gold buyers fell by 9.7 percent during October from the month before, whereas the number of sellers declined by 26.
Apple co-founder Steve Wozniak believes that bitcoin is superior to both gold and the “phony” U.S. dollar.
As reported by Bitcoin Magazine, Wozniak made this assertion at the Money 20/20 conference in Las Vegas, explaining that although bitcoin is criticized for its price volatility, it is more stable than government-backed currencies such as the U.
Vaultoro, a bitcoin-to-gold exchange, has secured funding from Finlab AG, a fintech company based in Frankfurt, Germany.
Vaultoro co-founder Joshua Scigala stated that the funding from Finlab will allow them to reach their goals faster. The first upgrade the company plans to implement will be a real-time gold-backed debit card. The card will allow the customers of the firm to hold their allocated gold — stored in a high-security Swiss bullion vault — while they can easily spend the funds anywhere Visa or Mastercard is accepted.
A well-known gold dealer based in London is now accepting bitcoin payments for its precious metal products.
The company, Sharps Pixley, announced on September 26 that it would begin accepting the cryptocurrency through a partnership with payments processor startup BitPay.
In statements, representatives from the firm framed the move as a way to offer wealthier clientele a way to invest in gold using their cryptocurrency holdings instead of fiat money.
"It is our view that many investors in bitcoin would like the option of holding intrinsic value in a traditional safe haven asset like gold, and be able to switch across in a simple and cost effective way.
A notable asset manager who focuses primarily on gold had a harsh word for the cryptocurrency market craze this week: "garbage."
Speaking with Kitco.com, a precious metals news and data site, John Hathaway of Tocqueville Asset Management became the latest observer to brand the cryptocurrency market "a bubble.