The American publishing executive, Steve Forbes, recently published a video concerning his thoughts on bitcoin and told viewers that the popular crypto asset is â€œnot yetâ€ the new gold. The business magazineâ€™s editor-in-chief says that bitcoinâ€™s value â€œremains too volatile,â€ and he believes the supply cap of 21 million will someday â€œseverely hinder its future usefulness.â€
There still remains a number of skeptical people in the finance world that believe cryptocurrencies have a long way to go from here. Just recently, Malcolm Stevenson â€œSteveâ€ Forbes Jr., published a video on Youtube concerning the largest crypto market in terms of market capitalization.
Forbes is a pessimist when it comes to bitcoin (BTC) and he says that gold has been the monetary standard for over 4,000 years. â€œIs bitcoin the new gold? Hereâ€™s why the answer is not yet,â€ says Forbes in the video released last Friday. The short three-minute film dubbed â€œWhatâ€™s Aheadâ€ published by Forbes is supposed to give people inside tips to better navigate this turbulent world.
Forbes highlights that â€œbitcoin has been on a tear this year,â€ and the publishing executive explained a few reasons why the crypto asset is doing so well.
â€œThe biggest booster of the â€˜bitcoin boomâ€™ is the fear that the Federal Reserve and other central banks are printing too much money,â€ Forbes read from his pre-written notes. But the executive said the fluctuations in bitcoinâ€™s value are too crazy and noted that â€œbitcoin only works best when it has a stable value.â€
When speaking about BTCâ€™s inconsistent price and lack of stability, he said itâ€™s like â€œsteak one day, dog food the next, [and] fillet the day after that.â€ He mentioned a number of traditional commodities that donâ€™t fluctuate in value, at least not the way that bitcoin does on a daily basis. Forbes is a gold man without reservation, and he stressed during the video that â€œfor now, gold is the best insurance against inflation.â€ With bitcoin, Forbes also showed contempt for the crypto assetâ€™s 21 million limited supply. Forbes insisted:
[Bitcoinâ€™s] arbitrary supply limit will severely hinder its future usefulness.
The publisherâ€™s staunch bias for gold is underlined throughout the entire three-minute Youtube video. The commentary also discussed the price changes between the U.S. dollar and the precious metal. â€œWhen you see the dollar price of gold fluctuate, what you are seeing is really the value of the dollar itself changing,â€ Forbes confessed.
After speaking down on bitcoinâ€™s supply cap, Forbes had an odd way of explaining that gold is scarce, but the precious metal is also not too limited. â€œIn contrast, the issuance of gold increased about 2% a year,â€ Forbes concluded. â€œThat keeps gold rare but not too rare.â€ Forbes commentary also follows the recentÂ statementsÂ from Fidelity Digital Assets president, Tom Jessop, who also recently saidÂ BTCÂ is not a store of value.
â€œWe use the word â€˜potential store of valueâ€™ as bitcoin is still extremely volatile, and by any standard perhaps would not achieve the mantle of a true store of value.â€JessopÂ explained.