Nick Szabo believes that Bitcoin (BTC) could replace Gold as an international value store. According to the acknowledged cryptographer, central banks could use Bitcoin and supplement their national gold reserves. He also believes that countries with macroeconomic problems would also begin to embrace Bitcoin and other digital assets. Szabo gave these comments a few days ago at Tel Aviv University during the Israel Bitcoin Summit.
Bitcoin or gold?
At the Israel Bitcoin Summit, Nick Szabo gave his opinion on digital currencies and the market in general. He mentioned that Bitcoin and other digital currencies will see greater demand from countries with volatile economies. This is the case of Venezuela and Zimbabwe. Both countries experienced hyperinflation. In addition, populist governments destroyed their economies and used monetary policy as a political tool.
In these places, the use of virtual currencies and fiat currencies from other countries is growing. In Venezuela, citizens exploit digital assets such as: Ethereum (ETH) and Bitcoin to survive and face the harsh economic conditions they currently experience.
In addition, Szabo said that the economies that have been included in the blacklist of international trade would also start using Bitcoin. Just to mention one example, the citizens of Iran are using Bitcoin to access US dollars. Russia could even buy Bitcoin, according to some reports made by analyst Vladislav Ginko.
In addition, he believes that central banks will eventually move to Bitcoin. This would be used as a means to supplement their national reserves of gold and foreign currency. This will also happen due to the lack of trust between foreign governments. In addition, Nick Szabo said that gold is technically vulnerable, while Bitcoin is not.
The Winklevoss twins think similarly to Nick Szabo. A few days ago, during an AMA held in Reddit, they mentioned that Bitcoin is better than gold. Moreover, they mentioned that Bitcoin will eventually outperform the gold market capitalization. At this time, gold has a market capitalization of $ 7 billion, while Bitcoin has a market capitalization of $ 64.83 billion.
Also published on Medium.