The American publishing executive, Steve Forbes, recently published a video concerning his thoughts on bitcoin and told viewers that the popular crypto asset is “not yet” the new gold. The business magazine’s editor-in-chief says that bitcoin’s value “remains too volatile,” and he believes the supply cap of 21 million will someday “severely hinder its future usefulness.”
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 “Steve” 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. “Is bitcoin the new gold? Here’s why the answer is not yet,” says Forbes in the video released last Friday. The short three-minute film dubbed “What’s Ahead” published by Forbes is supposed to give people inside tips to better navigate this turbulent world.
Forbes highlights that “bitcoin has been on a tear this year,” and the publishing executive explained a few reasons why the crypto asset is doing so well.
“The biggest booster of the ‘bitcoin boom’ is the fear that the Federal Reserve and other central banks are printing too much money,” Forbes read from his pre-written notes. But the executive said the fluctuations in bitcoin’s value are too crazy and noted that “bitcoin only works best when it has a stable value.”
When speaking about BTC’s inconsistent price and lack of stability, he said it’s like “steak one day, dog food the next, [and] fillet the day after that.” He mentioned a number of traditional commodities that don’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 “for now, gold is the best insurance against inflation.” With bitcoin, Forbes also showed contempt for the crypto asset’s 21 million limited supply. Forbes insisted:
[Bitcoin’s] arbitrary supply limit will severely hinder its future usefulness.
The publisher’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. “When you see the dollar price of gold fluctuate, what you are seeing is really the value of the dollar itself changing,” Forbes confessed.
After speaking down on bitcoin’s supply cap, Forbes had an odd way of explaining that gold is scarce, but the precious metal is also not too limited. “In contrast, the issuance of gold increased about 2% a year,” Forbes concluded. “That keeps gold rare but not too rare.” Forbes commentary also follows the recent statements from Fidelity Digital Assets president, Tom Jessop, who also recently said BTC is not a store of value.
“We use the word ‘potential store of value’ as bitcoin is still extremely volatile, and by any standard perhaps would not achieve the mantle of a true store of value,” Jessop explained.
