Max Kaiser: Gold is the “toilet paper” of the rich and Bitcoin is the “toilet paper” of the poor
This article Source: Cointelegraph Chinese, Author: WILLIAM SUBERG
People will buy bitcoins (BTC) in droves. Because Max Keizer predicts that people will not sell gold because of coronaviruses.
In the latest issue of the Kaiser Reports news program on March 31, Kaiser said the coronavirus pandemic would prompt billionaires to use gold as a safe haven.
Kaiser: People flock to BTC in droves
Once the supplied gold is bought and hoarded, the only option left is Bitcoin. He concluded that:
"I predict that once people realize that they can't buy gold, they will start to flock to Bitcoin in droves. This is not only the ultimate use case of Bitcoin, but also the most ironic."
This statement is based on a Bloomberg report on March 25, which warned that the gold industry is "facing unprecedented turbulence" due to a surge in demand. According to Cointelegraph, this precious metal experienced significant price fluctuations in 2020. The market has soared from a low of $ 1,469 two weeks ago to a high of $ 1,629, rising by 10.9% in just one week.
1-year comparison chart of Bitcoin and gold. Source: Skew.com
Coronavirus: Is gold the next toilet paper?
Compared with Bitcoin, gold has many disadvantages. Compared with cryptocurrencies, transferring gold is costly and risky, especially for cross-border transfers, and usually requires a trusted third party to store it. Unlike the Bitcoin blockchain, the gold market cannot understand in real time whether a particular unit of gold is genuine.
In addition to Bitcoin, gold is also affected by a phenomenon that affects all currencies in history-the higher the price, the more human energy is invested to increase supply.
As Saifedian Ammous pointed out in his book "Bitcoin Standards", due to the characteristics of Bitcoin's difficulty in adjusting (21% of Bitcoin's fixed supply), even if its price rises sharply, its supply will not increase.
Speaking of supply issues, the Kaiser Report added that this time, unlike the 2008 financial crisis, gold mines are being closed due to coronavirus. Ironically, this has stifled opportunities to increase gold supply.
Co-host Stacey Herbert concluded: "We may encounter a serious crisis in the gold market, just like the toilet paper market."
Kaiser previously stated:
"Remember: Billionaires think of gold and silver just like the unemployed think of toilet paper."