Co-founder of Ethereum (ETH), Vitalik Buterin, recently made a statement about how digital assets are gaining popularity and, consequently, becoming more valuable than conventional assets like gold.
Zach Weinersmith, the author of Soonish, asked what advantages cryptocurrencies have over gold in a tweet on October 26. The Ethereum co-founder responded. Buterin responded by claiming that cryptocurrency is a “better bet” than gold and that it has less adoption overall.
Buterin countered that gold is extremely difficult to use and extremely inconvenient when dealing with unreliable parties. He asserted that safe storage solutions like multisig, which are cryptocurrency wallets that require several parties to approve a transaction, are not supported by gold.
Particularly, there is a persistent, raging debate among investors looking for the most solid asset to utilize as a safe haven on whether cryptocurrencies or gold should be used. On October 22, as the competition for safe-haven assets grew in the face of the present macroeconomic climate, bitcoin and gold’s correlation increased to a 40-day high.
Notably, there is a persistent and contentious debate between cryptocurrencies and gold among investors looking for the most trustworthy asset to use as a safe haven. On October 22, the correlation between bitcoin and gold reached a 40-day high as the competition for safe-haven assets grew in the context of the macroeconomic environment at the time.
According to a recent analysis by Bloomberg analyst Mike McGlone, since Ethereum “may have a better correlation with stocks,” gold and treasury bonds will likewise move in the same direction as Bitcoin.
Some argue that the S&P 500 index and Bitcoin have a correlation that is close to 100%, while some IMF economists assert that in some parts of the world, the correlation between cryptocurrency and equity markets has increased by ten times. Cryptocurrency is the “wildcard” that may counter the wave, even if the US Federal Reserve’s tightening policy will likely influence the direction of the stock market in the future.