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▲ Bitcoin (BTC), Gold
The CEO of the World Gold Council strongly questioned the long-term viability of Bitcoin (BTC), stating, “Bitcoin will go to zero.”
According to Benzinga on May 20 (local time), David Tait, CEO of the World Gold Council, pointed out that Bitcoin was supposed to serve as an offset for investors' risks by decoupling from risky assets during crises, but it has not adequately proven that promise in reality. Tait said, “I thought Bitcoin should be an offset that could complement risky asset exposure. But in reality, it hasn't worked to that extent.”
Tait suggested that if an investor holds either gold or Bitcoin, holding both assets together could help offset each other. However, he expressed skepticism about Bitcoin's potential to last very long-term, based on his personal view. When asked about factors that could change his zero-Bitcoin outlook, he could not provide a clear answer and admitted that his view was not a conclusion based on analysis. Tait stated, “It's just my personal opinion, a gut feeling as a trader.”
While Tait acknowledged the potential for institutional use of stablecoins, he remained unconvinced about Bitcoin's long-term vitality. He also admitted that Bitcoin is currently functioning normally and has proven its success. The article also mentioned that BlackRock's IBIT reached $70 billion in assets under management in just 341 days, whereas the initial gold ETF took 4.6 years to reach the same size.
Tait attributed the rise in gold prices to concerns about U.S. and global national debt rather than war, tariffs, or interest rates. He said, “I don't think gold has actually moved because of war, interest rates, or tariffs.” He explained that the U.S. is expected to enter a period of $1 trillion in annual debt repayments, and if the yield curve moves with soaring inflation, the cost burden could become uncontrollable. He revealed that Asian central banks have been accumulating gold over the past three years to stabilize their vulnerable economies and currencies.
The World Gold Council is also pursuing the establishment of a Gold-as-a-Service platform that connects the physical gold market to a digital layer. Tait explained that the platform is designed to ease the complexities of custody and regulatory compliance, allowing the crypto community to create gold-backed products. The platform aims for a proof-of-concept by the end of the year, and the World Gold Council has already published a whitepaper online, inviting the crypto community to build products on this infrastructure.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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