The competition between Bitcoin and gold as the standard reserve value is increasing. Experts around the world are getting into the conversation, with conflicting reports coming from either end. In a recent online spat between gold expert ` and the president of El Salvador, Nayib Bukele, the latter schooled the former on the value of Bitcoin compared to gold.
When Schiff attacked Bukele with accusations of wasting taxpayers’ money, the president of El Salvador came back with some conclusive statements. Bukele revealed that the 44,106 oz of gold in El Salvador’s reserve has fallen in value by 0.37%. If the country decided to sell the gold and buy cryptocurrency one year ago, it would now have $204 million. At present, the gold reserve is worth $79 million. The net profits would have been more than double. The online conversation between Schiff and Bukele reignited the debate of gold vs Bitcoin as reserve assets.
Among other entrepreneurs and financial experts, the CEO of MicroStrategy, Michael Saylor, believes that Bitcoin has more promise than gold. Bitcoin is the best hedge against inflation, according to him. However, he does acknowledge that Bitcoin is still not a viable instrument for transactions.
The debate around gold vs Bitcoin has resulted in Bitcoin coming out as the winner on multiple occasions. In many surveys, fund managers have also claimed that Bitcoin provides a better hedge against inflation than gold. If things keep moving in this direction, we might soon see national Bitcoin reserves taking over national gold reserves.