Grayscale Investments, the world’s largest cryptocurrency asset manager, says Bitcoin (BTC) is the new gold in their new Bitcoin TV commercial, which is a part of the firm’s “Drop Gold, Buy Bitcoin” campaign launched on May 1.
— Grayscale (@GrayscaleInvest) May 2, 2019
While Grayscale is pushing Bitcoin as digital gold, the cryptocurrency still has a long way to go before it reaches gold’s level of being a store of value. Currently, Bitcoin has a market cap of $97 billion, while gold’s market cap is an astonishing $103 trillion.
However, Bitcoin is the world’s first digitally scarce asset, making it a highly attractive store of value in today’s digital world. This is the message being sent in Grayscale’s advertisement campaign, the idea that gold investors are living in the past with an out-of-fashion asset weighing down their portfolios.
Per the “Drop Gold” press release, Barry Silbert, founder and CEO of Digital Currency Group and its subsidiary Grayscale Investments, had this to say about gold and Bitcoin:
“The gold industry has done a fantastic job of marketing an overpriced metal but Bitcoin has superior physical properties and market utility. I believe that Bitcoin will become the store-of-value for our digital age.”
Replacing Gold With Bitcoin
Silbert believes that Bitcoin will replace gold, as the younger generation of investors values it more highly than gold. Expanding on this, he said:
“There is a generational shift in how individuals are approaching investing. We strongly believe that investments in gold will be reallocated to Bitcoin as Baby Boomers begin transferring their wealth to a younger generation of investors, one that wasn’t raised on the gold standard.”
Backing up the statement above, Grayscale has run simulations that show dropping a mere 15% of a portfolio’s gold allocation and replacing it with Bitcoin will produce an annualized return of over 15% higher than that of a pure gold allocation, with a lower level of volatility.
With figures like that, the younger generation of investors will see investing in Bitcoin over gold as a no brainer, especially considering Bitcoin’s superiority in terms of speed, security, and efficiency in addition to its high return on investment (ROI).
How long do you think it will take Bitcoin to begin stealing gold’s market cap? Are people already dropping gold for Bitcoin? Let us know what you think in the comment section below.