Some of what Petr Dvoryankin says is simply incorrect. I wanted to present, what appears to be, a desperate attempt to lure more people into cryptos. You do what you want with your funds it is no business of mine, but gold, real physical gold, is not an illusion. What actual value does this – 239357u#@$!#@eiodc – hold? Isn’t that what cryptocurrency is – a string of alphanumeric characters held in a so-called wallet on the internet? Now, if you hold any, pick up a piece of gold or silver – of the physical type and explain to me how these two items compare to one another? The short is – they don’t. Physically impossible. There’s that word again – physical. Might be something to that
With the price of bitcoin price continuing to fluctuate and some countries considering the creation of their own digital currencies, investors are wondering whether cryptocurrencies could eventually become an asset on par with gold.
Petr Dvoryankin, founder of CryptoLife — an international network of professional investors working with digital assets – told Sputnik that he doesn’t consider gold as a means of payment of the 21st century (unlike, for example, 19th century), arguing that it is rather an attractive investment asset like real estate or artwork. Source
The above statements prove beyond question this person doesn’t truly understand gold or the role gold plays, even today, in our lives. Gold is a vital monetary asset and if it were not vital central banks around the world would not store it, account for it and keep it as an asset on their ledger – period. Russia, Kazakhstan, and a great many other nations would not continually add to their official reserves. If gold compares to “real estate or artwork” then why is gold an acceptable form of payment in most countries around the world? I can assure you there are plenty of people in most every nation on this planet that would be wiling to accept gold as payment today.
Therefore, he claimed, Bitcoin has a number of advantages over gold as, for example, you can use the former to pay for goods and services in some countries whereas gold can usually be used as means of payment only in emergency situations or in some “exotic countries.”
“In any case, the gold price is not as volatile [as cryptocurrency prices] so it is more suitable as a store of value. In terms of an investment however, it [gold] is a less risky but also a less lucrative instrument than cryptocurrencies,” Dvoryankin said. Source
Simply stating that gold is only used “emergency situations or in some “exotic countries”” doesn’t make it true. Where is the evidence to support this misguided idea? Bitcoin, which is the only cryptocurrency out of the more than 1,200, on the planet that is accepted anywhere as payment. And to boot, bitcoin is actually losing ground as a form of payment. There are fewer places in the world that will now accept or even recognize bitcoin as a currency or form of payment. In my opinion, pure speculation, this trend will continue. Where as gold and silver will be making a comeback to be used in everyday transactions around the world.
I can say with confidence that Russia and China are both pushing for this to happen, otherwise, they would not be investing in gold markets in Moscow and Beijing for the specific purpose of assisting Brazil, India and South Africa to build up their gold reserves. Why would it be necessary to help these nations build up their gold reserves only for it to sit in a vault and do nothing? That, in my opinion, is not the goal. The goal is to bring back asset backed currency that levels the currency “playing field” so that one nation has no longer has the “exorbitant privilege” of being the “world reserve currency”, backed by guns and debt.
Gold and silver have been money and currency for more than 4,000 years and bitcoin is just now approaching it’s first decade of existence. Bitcoin does hold any value, it is barely even a currency and is nothing more than tool to support governments and banks to push for a cashless society. Gold and silver work perfectly as a means of payment and store of wealth for the “everyday man”. If we could just get government and the banking cabal out of the way our monetary system would not need such flights of fancy as bitcoin or any of the more than 1,200 off-shoots.
