Could it be gold that witnesses BTC & ETH drive higher this year?

Quick take

1 minute read

• The world of crypto has once more been thrown into the mainstream media. 

• Bitcoin and Ethereum have been two assets that have been performing extremely well seeing an influx of investment.

The world of crypto and digital assets has once more been thrown into the mainstream media. Over the past few months, Bitcoin and Ethereum have been two assets that have been performing extremely well seeing an influx of investment whether it be retail or institutional.

Throughout 2020, bitcoin added 300% to its price with space adding 600% over the past 12 months.

The co-founder of Ethereum, Vitalik Buterin has given his end of year thoughts and revealed what he thinks is an “underrated“ bullish scenario for the industry.

Writing in a blog post, he said:

"One of the more underrated bull cases for cryptocurrency that I have always believed is simply the fact that gold is lame, the younger generations realize that it's lame, and that $9 trillion has to go somewhere."

Bitcoin has been for a long time now been compared to that of the precious metal gold. “Digital gold“ is a term that is commonly used to describe the leading asset.

Buterin went on adding that the current climate is unusual and that cryptocurrency is going to play a big part in the future:

"a world where blockchains and cryptocurrencies are well poised to play an important part, though for reasons much more complex than many people think, and having as much to do with cultural forces as anything financial."

One venture capitalist known as Fred Wilson shared a similar sentiment in his own New Year blog post. As well as talking about the COVID-19 pandemic, Wilson said that:

"I believe that governments will respond to all of these economic challenges by continuing to print fiat money without restraint and by taxing and regulating innovative new companies to protect old and dying companies."

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.