Bitcoin has become hugely popular in 2020 due to its store of value, safe haven and digital gold stories. Digital gold history has taken center stage lately as the bullish momentum of the precious metal subsided and the cryptocurrency market took off.
However, a self-proclaimed contrarian investor focused on gold bars says that digital gold makes little sense and compared it – ridiculously – to “digital steak”. Therefore, comparing Simon Mikhailovich himself makes no sense.
2020: The year of the Bitcoin narrative “Digital Gold”
Bitcoin was developed by Satoshi Nakamoto to share several key characteristics with gold and other precious metals, most notably their scarcity. The cryptocurrency maker has borrowed other commodity-related concepts like mining.
However, unique to gold, certain attributes of a currency have also been added, e.g. B. Decimal places for the unit of account and the ability to send the asset digitally.
Related reading | Why new Bitcoin investors shouldn’t be put off by the tight BTC supply
The “Digital Gold” narrative that has emerged since Paul Tudor Jones said that Bitcoin could outperform the shiny yellow metal that was then on-trend, has taken the forefront and even managed to capture the imagination of high-net-worth investors wake up. Many are distributing gold in bitcoin to put capital where it is likely to perform best.
However, a self-proclaimed contrarian investor claims that the narrative makes as much sense as a “digital steak”. Is his comment a successful reply or is he wrong about the rare, digital-only asset?
Contrarian warns that crypto is becoming the enemy of fiat currency and governments
According to the founder of The Bullion Reserve Simon MikhailovichBitcoin as a digital gold story makes no sense. Or it “makes about as much sense as” digital steak “.”
TBR is a private bullion wealth manager, so Mikhailovich could clearly be biased about the cryptocurrency, which is severely affecting his business model and earnings.
Gold is breaking down against Bitcoin, targeting another 90% fall against the cryptocurrency | Source: XAUBTC on TradingView.com
The comparison is definitely strange. When Bitcoin followers flooded the investor on Twitter, he started adding more insight to his thought process.
When asked with sarcasm, some users asked if he was so skeptical about “digital mail” – a nod to the fact that there were once times when experts thought E-mail was unnecessary. In this case, emails would transfer information rather than actual paper, referring to fiat money and ignoring the fact that paper money is digitally transferred endlessly throughout the day via debit cards, PayPal, Venmo and more.
He also stated: “Throughout history, private challenges to sovereign currencies have been viewed and treated as an existential threat to sovereign power. “Everyone can draw their own conclusions,” he added.
Related reading | Losing a decade-long trendline, the dollar could skyrocket Bitcoin
There is always a possibility that governments see this as a threat, but the asset has been decentralized and operated out of the reach of state actors. And the argument is weak from someone who knows gold well enough to realize that US citizens were once forbidden from keeping the precious metal to themselves Implementing Ordinance 6102and might as well be at risk.
The only reason Bitcoin is targeted by the government when gold has been gone for decades is because the cryptocurrency is seen as much more dangerous to threaten the fiat currencies that control the world.
But any government that bans BTC would be at risk of a similar situation. Being the weird man can result in other countries receiving a larger share of the limited supply and penalizing nations that are late when they become the global reserve currency.
The digital steak analogy is incredibly bad, but email is the ideal example. The best technologies are the ones you don’t need until they become commonplace, but once they are, they become everyday staples.
Perhaps the digital gold narrative is wrong, but solely due to the fact that a nickname after the precious metal, despite decades of the gold standard, would neglect the cryptocurrency a few coins.
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