World Gold Council CEO Says Bitcoin Could Fall to Zero, Urges BTC Holders to Allocate to Gold

David Tait, who leads the World Gold Council and chairs the FMSB Precious Metals Working Group, said Bitcoin could eventually fall to zero, citing the cryptocurrency’s lack of institutional backing, public trust, and concrete applications.

According to Tait, Bitcoin remains highly correlated with high-risk assets and has failed to decouple from them or provide the risk hedge some investors expected. Gold, by contrast, has safe-haven characteristics and tends to move inversely, he said.

He recommended that Bitcoin holders allocate part of their portfolios to gold as a hedge.

Tait also distinguished Bitcoin from stablecoins, saying stablecoins have practical value in institutional and asset-collateralized uses. Bitcoin, however, does not have the public trust associated with fiat currencies or the backing of central banks and major financial institutions, factors he cited when predicting that its value would ultimately fall to zero.

Source: Bonnie Blockchain