Forbes’s Chief Editor Explains Why He Thinks Gold Is Better Than Bitcoin
Steve Forbes is a renowned publishing executive for an American business magazine. The chief editor explained why he thinks gold is better than the cryptocurrency in specific ways. In a YouTube video, Forbes declared his criticism for Bitcoin as a long-term investment. He believes that the currency’s volatility might not make it a reliable store of value, unlike gold, which has been used for centuries as a form of investment.
Prominent investors are no running into the Bitcoin market
The two-time presidential candidate declared that cryptocurrency investors decide to invest in the digital asset because of their fear of paper cash. He observed that fiat currency might have an inevitable devaluation when the government decides to print more money than necessary, preventing scarcity. Forbes claims that this fear of devaluation drives investors in cryptocurrencies like Bitcoin.
The business advisor noted that there couldn’t be a comparison between the two investments. He reported that gold is a better long-term investment when compared to cryptocurrency. Forbes declared that gold has managed to remain a reliable store of value for over several years and cannot be compared with Bitcoin, which has unstable prices. The original Forbes publisher’s grandson explained that the constant change in Bitcoin prices and limited supply could prevent its long-term usefulness.
Forbes noted that gold prices are linked with the American dollar. He explained that the sudden change in dollar prices would lead to changes in the value of gold. The dollar price fluctuation is not the case with the digital asset. Despite Forbes’s preference for gold as a store of value, he did not condemn Bitcoin. He suggested that there is hope for Bitcoin to become the new reliable store of value someday, possibly.
Limited supply of Bitcoin is hindering utility
Steve Forbes pacified crypto enthusiasts when he reported that he sees some potential in the digital assets and could become a long-term investment for investors one day. However, he noted that it might be too early to imagine a promising future for the digital asset. Steve observed that gold was a rare asset, but due to the increased mining output searching for the value metal, it’s not as rare as it used to be. He noted that the gold supply rises to 2% every year, making the scarcity questionable.
The business expert did not hide his preferred recommendation, which is gold, to his viewers. He is still skeptical about the digital asset being a long-term investment. He stressed that federal reserves are a primary concern of investors who run to cryptocurrency because they print too much money every year.
Despite not being an economist, the Forbes editor was born with money and experience in the business. The 73- year old expressed his doubts. He believes the digital asset could not be used to store family fortune. He was explicit about how different the two investments are. According to him, the bitcoin has to have some stability to be considered an efficient store of value. He also described that the finite supply of Bitcoin is reducing its utility.