Szabo Believes Cryptocurrency Is Poised to Replace Gold

Author: 
Dylan B
Date: 
January 12, 2019
Read time: 
2 minutes
Gold
Cryptocurrency
Nick Szabo

Nick Szabo, one of the most influential individuals in the cryptocurrency community who was responsible for designing the concept of Bitgold years before Bitcoin was created and predicting the use of autonomous organizations and technology that utilizes smart contracts, recently made some powerful statements regarding crypto at the Israel Bitcoin Summit at the Tel Aviv University on January 8th.

Nick Szabo, one of the most influential individuals in the cryptocurrency community who was responsible for designing the concept of Bitgold years before Bitcoin was created and predicting the use of autonomous organizations and technology that utilizes smart contracts, recently made some powerful statements regarding crypto at the Israel Bitcoin Summit at the Tel Aviv University on January 8th.

Szabo’s statements came about as a response to the opinions of Avi Simhon, the senior economic policy advisor and the head of National Economic Council for Israel, who stated that Bitcoin was essentially an inefficient currency that would eventually disappear. In addition, he continued to say that the application of such technology on a global scale would waste trillions of dollars in order to achieve.

In response, Szabo first began by informing the audience that cryptocurrencies were a viable way for countries who had been blocked from trading with others or for countries who are currently suffering from hyperinflation to begin the recovery process. Many have supported this claim by pointing out the increase in popularity of cryptocurrencies such as Bitcoin Cash and Bitcoin in countries like Zimbabwe, Iran, and Venezuela.

cryptomaniaks

He then continued by stating that there is a possibility that central banks of the world may choose to use cryptocurrency in place of gold in the near future. Regarding this statement, Szabo explained:

There’s going to be some situations where a central bank can’t trust a foreign central bank or government with their bonds for example. One solution that’s been developed is to have the Swiss government hold it for you – that’s not a trust minimized solution. The Swiss government itself is subject to political pressures and so a more trust minimized solution is cryptocurrency. The other problem with gold reserves is that they’re physically vulnerable. When the Nazis conquered countries in Europe, the first place they went to was a central bank’s gold reserves.”

Many supporters of this statement have directed attendees and potential investors alike to the growing volatility in traditional investment options such as stocks and equities as well as the significant growth in the precious metal market.

While it remains to be seen as to whether or not crypto will find its way into the mainstream economy and become a popular financial tool, Szabo’s background and belief in the industry has managed to attract the support and faith of many of those operating in the space.

Are you interested in taking advantage of this major financial and technological advancement before it becomes as heavily implemented as Szabo predicts above? If so, take a look at our resources to become well-versed in the area and begin investing!

Posted by Dylan B

Dylan Buckley is a writer based in California. He became interested in cryptocurrency upon discovering it in 2014 and soon started investing as well as writing for a wide variety of clients and crypto-startups in the space. When he is not producing content for individuals and businesses, he is typically working on his own self-development content or making music.

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