Bitcoin Is the Millennial Equivalent of Gold Rush 2.0, Says Bitpanda CEO
- Bitpanda CEO calls Bitcoin the millennial gold, which is better than gold
- Bitpanda’s expansion to Turkey was driven by demand for crypto in the country
- Investors speculate with different options about the value of crypto and its future
On 7th March 2019, Cointelegraph reported that Bitpanda CEO Eric Demuth stated that in a time when many crypto projects have achieved a milestone, regulation by government authorities would be more necessary, rather than its usual perceived threat to the cryptocurrency industry.
Speaking during the Blockchain Economy 2020 Conference that started on 24th February in Istanbul, Turkey, Demuth referred to Bitcoin as Gold 2.0, the better version of gold.
Demuth also talked about Turkey as its first expansion hub outside of the European Union due to its high demand for cryptocurrency and other factors such as its geographical size, proximity, and cultural affinity.
Demand for cryptocurrencies is directly proportional to the demand for precious metals
Bitpanda exchange trades BTC and other precious metals, including gold, platinum, and silver. Referring to bitcoin as the superior Gold, Demuth said that as the demand for digital currency continues to rise, there will be more demand for precious metals.
Several factors that make Bitcoin superior, according to Demuth, are its scarcity, high liquidity, and functionality, cheap transaction costs, and portability:
“That supports the theory I always have that Bitcoin is Gold 2.0 for a younger and more digital generation.”
According to him, the cryptocurrency industry has now established itself as a whole new, self-sufficient asset class that is unlikely to vanish ever again:
“They will always be here. Especially Bitcoin is like the gold standard of crypto. There will never be a world without digital assets or digital currencies.”
Crypto Regulation Is No Longer a Witch hunt By Financial Regulatory Authorities
The crypto space is heavily unregulated, but in the past years, especially in the UK, regulators have made big strides to regulate and facilitate the legal development of blockchain-based projects. While many startups have been fined or their assets frozen for apparently failing to comply and conducting trading or raising capital with no proper licensing, Demuth stated that crypto projects are evolving.
He mentioned the current AML5 regulation in Europe, which he said is similar to banking regulations.
“Four years ago, that would have killed innovation and companies in Europe. Imagine you’re just a new startup, you can’t achieve this.”
Investors Have Different Opinions on Crypto’s Value and Market Behavior
Contrary to his prediction, billionaire investor and CEO of Berkshire Hathaway said that cryptocurrencies have no value since they do not produce anything. He added that he doesn’t own any cryptocurrency and does not plan on doing it:
“You can’t do anything with them except sell it to somebody else.”
Meanwhile, Ethereum’s founder and millennial developer Vitalik Buterin recently disagreed with S2F predictions about Bitcoin prices, stating that no cryptocurrencies play by the rules of the stock-flow model.
Featured image courtesy of Shutterstock. Source: Cryptopress.