Should investors move to bitcoin or stick to gold?

Channel: Fox Business
Published: 05/07/2019 02:44 PM

Grayscale Investments CEO Barry Silbert on investing in bitcoin versus gold and Facebook's plan for a cryptocurrency payment system. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headqua...

Anxious here. expecting lower opening joining me. Barry sill, bert ceo, digital currency group, overall umbrella company, good to see you look, you have been a bull on bitcoin a long time. You were a pioneer in term of exchanges investing before we get to about it. So i know specifically when you see a market lower the way it is today nervousness what is going on. Do you see people pivot toward b ...
tcoin? Do they change investments, or do you think they shy away everything from. ? What is really interesting? Bitcoin tends to perform well in periods of financial dislocation like gold used to bitcoin past 24 hours up 10 %, why. could be a lotof different things: news out of china. Just about ethically looks great price up. Almost one hundred percent year-to-date - or it could be that this campaign we launched last week - is having effect. Talking about that in second, but look at price 5896, you are talking a rally.

You still talking about a decline from highs. So what is the sales pto buy? Bitcoin. interesting is last time i was on with you. Bitcoin was 500 dollars, bitcoin was done. A series of record highs: a crops, 80 %, then record highs again. , but sales pis, bitcoin, younger generation version of gold. has ail the same characteristics as gold. Scarce are portable, but has real utility bitcoin impunity, creatingan entire new payment financial network from central markets. , . You seed something as we gotten to go digital. You want a payment system digitally why bitcoin there are alternatives. , thousands out there bitcoin first mover a hundred billion dollars market cap, amazing, passionate community, and i do think that there will be lots of competition for winning you currency over time.

Bitcoin is dominating absolutely dominating the conversation. Very volume is obviously let me ask you about this campaign drop gold campaign. That is the message from investments to challenge a trillion-dollar institution, encouraging people drop gold from portfolios in favor of bitcoin secretarying at salt conference. I know you are communicating this. Why should i drop goldpeople say gold is a real hedge. If i think things are negative elsewhere, i want to own dpold a changeable asset. 8 trends of gold. Today, what is interesting? The younger generation of investors, people not yet allocated into gold view gold same way. Parents or grandparents did we grew up after gold standard, so the biggest buyers of gold large was he buyers of gold are central banks. There is this disconnect between gold bugs saying you vest in gold, because you take issue with central banker: fiscal monetary policy decisions. They are the ones buying all the gold.

So if you do want to make an investment that will performer well with things, don't go wellwhy aligning yourself with china and russia, all countries that are amassing all the gold. Isn'T that the reason you want to own gold, because central banks are not the going to sell it so easily going to be stable? So if market is plummeting in terms of stock, don't i want to go to something real tangible, i know, is not going to have that kind of volatility. Ultimately, the way gold will have meaningful value if u. s. dollar declines in value, so essentially -- . No, why are --? Why bet against u. s. with bitcoin same characteristics of gold? Investing in something has real utility upside a hundred billion dollars relative to 8 trillion gold takesa lot for gold price to double. From 8 trillion sat a hundred billion carve off few percent from trillion gold market meaningful.

There is a limited amount of bitcoin. , like gold, finite in supply. It is scarce, but has utility and also much more accessible. Anybody who has a phone anyone in world can get bitcoin gold is heavy expensive to store. It doesn't really do anything other than make nice jewelry. That is true. I accept that it is seen as a hedge. You are going to have the change. A generation of you know thinkers in terms of how do i save money and hedge against a decline of disruption. Elsewhere. i thinkthe drop gold is intended to about provocative, has done good job monitoring gold as hedge investment, when a better one called bitcoin.

, >, >, cryptocurrency facebook. Facebook is recruiting financial firms online mere chanters to launch a cryptocurrency based payment system could graeth effect. Current crypto marketplace your take on facebook. We are under nondisclosure with facebook. I can't speak to that. You see square fidelity, new york stock exchange involved in creating from your to support, coism, jamie dimon, hates bitcoin, launching j. p. morgan county. , . He did hate it until his daughter scored, -- bitcoin. made -- .

What do you say to those investors who got burnt on bitcoin because they got in thetop? Then it went down. They are seeing this as a real risky bet. Much riskier than gold. It certainly is a risky bet. You should never put more money into bitcoin than you can afford to lose absolutely, but this is this is a perhaps a generational opportunity to get involved in an asset that is going to displace what gold did or played when the portfolios past 20 years. I think a really interesting opportunity that provides a lot of upside. Tell me how bitcoin changes next 20 years. What kind of a vision do you see for bitcoin. ? First, it is going to display of gold as the store value investment that goes intoportfolios. More importantly, there is amazing, o innovation happening.

Thousands of companies funded 5 billion dollars raised in companies past five years building infrastructure to make it really really easy to get on and off the cryptocurrency superhighway. Once you have access to digital money, the sky is the limit. You move friction and middle men costs think about the ability to move money anywhere around the world, basically free how powerful.

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