- Steve Forbes said Bitcoin is not a good long-term store of value.
- Instead, he recommends gold.
- According to Forbes, the supply cap and volatility of BTC limit its utility.
According to Steve Forbes, Bitcoin actually has a price benefits from the FUD – through monetary policy.
“The biggest trigger of the Bitcoin boom is the fear that the Federal Reserve and other central banks are printing too much money,” Forbes said on its YouTube show “What’s Ahead” today.
But while other investors have viewed Bitcoin as a store of value, the two-time Republican presidential nominee said he’s instead docking his wagon to gold.
Although he’s not a trained economist, Forbes grew up on money. His father, the entrepreneur Malcolm Forbes, founded the namesake Forbes Magazine that the younger Forbes now runs. Steve doesn’t think Bitcoin is the right investment to preserve family wealth.
“Steak one day, dog food the next, fillet the day after,” he said of the ever-changing price of Bitcoin.
“Bitcoin remains too volatile to be a long-term store of value, as gold has traditionally done,” he told the audience. Additionally, he said, “Bitcoin’s arbitrary supply limit will significantly affect its future usefulness.”
He also suggested that these properties were somehow different in gold. “When you see the dollar price of gold fluctuate, you see that the value of the dollar itself is really changing.”
That’s a point of view.
He also said that thanks to mining production, gold supply is increasing by an average of 2% every year, making it “rare, but not too rare”. Although he didn’t mention that the gold supply on earth is actually not infinite and will eventually reach its limits, just like the supply of Bitcoin.
Forbes concluded, “As Bitcoin moves forward, it may become the new gold, but that day is not here yet.”
You could say that this day will be … golden for Bitcoin.