According to reports, Lou Kerner a Venture Capitalist says top digital asset Bitcoin (BTC) well positioned to replace gold as the most dominant store of value. The investor also noted that Bitcoin’s market capitalization has already surpassed the market cap of silver already so moving past that of gold shouldn’t be a big deal. We can recall from an earlier report that Kerner made remarks about Bitcoin (BTC) August last year when he forecasted that the top digital asset by market cap would overtake gold the mostly dominant store of value.
Bitcoin (BTC) Price Today – BTC / USD
Kerner: Cryptocurrency Will Surpass The Internet
Kerner who is also the co-founder of CryptoOracle, also made reference to the current bear market. According to him despite the current price movement cryptocurrency will be a more disruptive technology in the future than the Internet. In two decades crypto will be way ahead of the Internet the New York-based CryptoOracle partner declared.
When asked about why the price of Bitcoin (BTC) dropped sharply from its all-time high of $19,500 attained exactly 13 months ago, Kerner said it is because the digital asset market moved ahead of itself because of unchecked capitalism. He declared that virtual currencies and the Blockchain technology would inevitably prove that they are more revolutionary solutions than initially imagined. Basically, this means that the actual impact of cryptocurrencies and Blockchain technology won’t be fully known until two decades into the future.
Kerner Calls the USD a Ponzi Scheme
When asked to give more details regarding his position that Bitcoin (BTC) would gradually replace gold as the dominant store of value, Kerner declared that although gold has had an excellent run, now is the time for it to step aside. In his words:
“Gold has enjoyed a 5,000-year run, and if you consider the history of currencies, you will find that 100% of them went to zero until 400 years ago. The truth is that the dollar is a Ponzi scheme because this is how the governments work.”
He believes that no one thinks we are ever going to repay the debt we owe. “We are never going to repay the $20 trillion-plus of debt. Gold is $8 trillion in value while the second biggest store of value is Silver at $50 billion and then Bitcoin (BTC) is already worth $60 billion, meaning it is now ahead of silver in second place as one of the dominant stores of value.” He added.
Bitcoin Isn’t a Store of Value
Skeptics like Gary Shilling, a financial analyst, describes BTC as “a grand Ponzi scheme,” which is why his investment firm is going to short it. According to him, Bitcoin (BTC) fails as a currency due to not being a store of value, means of exchange and not internationally accepted. On the other hand, technology billionaires like PayPal co-founder Peter Thiel, Twitter CEO Jack Dorsey and Venture Capitalist Tim Draper remain confident that Bitcoin (BTC) will displace other currencies to become the standard means of exchange for goods and services.