Key Takeaways
- CEO Jack Mallers discussed Bitcoin’s advantages over gold.
- He said cryptocurrency’s finite supply and predetermined issuance schedule make it the “hardest money ever.”
- The value of Bitcoin ETFs could flip their gold equivalents in the next two years.
Among their respective proponents, Bitcoin and gold are both celebrated for their relative scarcity compared to fiat currency.
According to Zap CEO Jack Mallers, however, Bitcoin easily trumps gold thanks to Satoshi Nakamoto’s “decentralized clock.”
Zap CEO on Bitcoin vs. Gold
In comments made at Bitcoin Atlantis in Madeira, Portugal, Mallers called BTC “the hardest money ever.” Alluding to the notion of “hard” currencies like the US dollar that have historically served as a reliable store of value, he argued Bitcoin’s finite supply and predictable issuance schedule give it an advantage over gold.
While both assets have a limited supply, Mallers was keen to differentiate the processes needed to mine each one.
He said: “If there’s enough demand for gold, we will find more in the ground.”
With Bitcoin, on the other hand, no amount of mining activity can ever speed up the issuance of new coins. This is because the rate was predetermined from the very first block.
“You’ve Got to Solve Time Travel” to Mine More BTC
Mallers said: “If you want to find more Bitcoin, you’ve got to solve time travel.”
Going on, he claimed Bitcoin’s rigid minting schedule was the primary driver behind its current price surge. The Bitcoin payments company boss said: “That’s why we’re at $60,000 right now. It’s because Wall Street wants more Bitcoin and they can’t travel to the future and get it.”
This is a timely observation, given that there is rising institutional interest in Bitcoin Exchange Traded Funds (ETFs)
Bitcoin ETFs Could Overtake Gold
Having traditionally kept it at arm’s length, Wall Street has embraced crypto since the first spot Bitcoin ETFs arrived in the US earlier this year.
At the close of trading on Thursday, February 29, the 10 US-regulated Bitcoin ETFs had a combined net asset value of $47.77 billion. Considering the pace of adoption, Bitcoin funds could surpass gold ETFs in assets under management within two years.
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
