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A prominent Bitcoin (BTC) advocate, Max Keiser, has defended the asset’s superiority over traditional metals like gold and silver as a store of value. Keiser highlighted Bitcoin’s market performance and contrasted it against traditional "hard money."
Bitcoin's scarcity makes it the ultimate store of value
Keiser noted that Bitcoin’s rise from $1 to $100,000 has proven that absolute scarcity wins in the financial space. He is emphasizing that Bitcoin has outperformed all other assets, including gold and silver, primarily because of its scarce nature.
Notably, only 21 million Bitcoin will ever exist, and this has helped the flagship digital asset retain its value. Hence, Keiser stated, "No gold or silver? No problem. Stack Bitcoin." He is insisting that BTC is the alternative haven in the investment ecosystem.
The Bitcoin advocate argued that it was the asset’s existence that awakened investors to the idea of scarce and noninflationary assets. This, he believes, indirectly prompted people to revalue precious metals.
Keiser maintained that the current surge in gold to $4,100 and silver hitting $52 is not a competition.
"The big moves in gold and silver are evolutionary steps," he stated.
The Bitcoin advocate is implying that gold and silver are only reacting to current economic instability. He believes that these are just a pathway to the movement of capital to the flagship digital asset.
Interestingly, financial journalist Michelle Makori believes that there is a systemic crisis in the traditional precious metal market. She noted that silver might experience a short squeeze due to excessive paper leverage.
Makori asserts that bullion banks are overselling "paper" silver, which suggests there are far more claims on ounces of silver than the actual physical asset. With buyers demanding physical delivery, when contracts cannot be honored, it might implode.
Market volatility persists despite Bitcoin's long-term strength
On the broader market, Bitcoin is changing hands at $110,752.38, which represents a 3.23% decline in the last 24 hours. The asset dropped from a peak of $116,020.49 as escalating macroeconomic tensions affected market sentiment and price outlook.
The trading volume has also suffered a decline of 19.9% to $77.5 billion within the same time frame. Market participants are likely waiting out the current volatility before committing more funds to the asset.
Meanwhile, prominent financial commentator Peter Schiff believes the bottom can drop out of Bitcoin anytime. He recently predicted that BTC could plunge to $75,000.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team