Hoskinson weighs into the debate to ascertain whether bitcoin is digital gold.
There has been a serious debate over whether Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, should be referred to as digital gold or not.
The “digital gold” description is an investment case Bitcoin backers use to lure many investors into adopting the top asset class. According to these Bitcoin enthusiasts, the top asset class can provide the same store of value and utility similar to the precious yellow metal, gold.
Charles Hoskinson, a cryptocurrency entrepreneur and the founder of Cardano, recently supported the assertion that Bitcoin is digital gold.
The Cardano boss made this known in a live YouTube session over 16 minutes.
“You hear a lot about Bitcoin being digital gold. It may surprise you guys that I do agree with that. I think Bitcoin is not only digital gold, but it has real use and utility,” Hoskinson was quoted as saying.
Bitcoin is Digital Gold. Let's talk about the mine… https://t.co/fTJEsOeGQS
— Charles Hoskinson (@IOHK_Charles) October 3, 2022
Hoskinson: BTC Lacks Two Important Properties
While Hoskinson sees BTC as a good store of value, he thinks the cryptocurrency falls short of two major properties of money – means of exchange and unit of account – because of its massive volatility. However, the same cannot be said about gold.
“The issue is that Bitcoin is not so good as [a means of exchange and unit of account]. It is hard to price things in [BTC]. People tend not to want to transact in real life using [Bitcoin]; they just want to store it,” he added.