In a recent tweet, Ethereum co-founder Vitalik Buterin argued that crypto is one of the best investments available, as opposed to gold, which is inconvenient and hard to use.
Some crypto opponents argue that gold is better because it is not controlled by just a few entities, unlike the Ethereum blockchain, which Buterin claims makes it less appealing.
Decentralized Money-issuing Authority
Vitalik Buterin, the Ethereum’s co-founder, tweeted that cryptos are a better investment than gold after he weighed in on the crypto-versus-gold debate.
In a tweet published on October 26, 2022, Buterin critiques Zach Weinersmith’s assertion that gold fits well with what cryptocurrency enthusiasts are advocating.
Weinersmith argued in his tweet the same day that the only valid argument put forward by crypto advocates is the need for decentralized money-issuing authorities.
However, given gold’s qualities and characteristics, the author wondered why gold isn’t being touted as a solution.
“So, the only argument I’ve heard about crypto that makes sense within the believer’s own framework is that they don’t want a centralized authority for money. In that framework though, why not just go with gold?,” said Zach Weinersmith on Twitter.
So, the only argument I've heard about crypto that makes sense within the believer's own framework is that they don't want a centralized authority for money. In that framework though, why not just go with gold?
— Zach Weinersmith (@ZachWeiner) October 26, 2022
The Inconvenience of Gold
When Weinersmith pushed back against his suggestion, the Ethereum blockchain co-founder highlighted the key areas where the precious metal seems to fall short.
“Gold is incredibly inconvenient. It’s difficult to use, particularly when transacting with untrusted parties. It doesn’t support safe storage options like multi-sig. At this point, gold has less adoption than crypto, so crypto is the better bet,” he said.
Crypto opponents and advocates immediately reacted to Buterin’s terse response to Wienersmith’s original tweet.
According to Hayden.eth, one Twitter user said that “gold also has the risk of huge centrally controlled inflation due to asteroid mining.”
Golden Knight, a Twitter user, questioned Ethereum’s decentralization credentials, in light of ongoing reports that suggest the chain is controlled by only a few parties.