The Ethereum blockchain co-founder, Vitalik Buterin, insisted in a recent tweet that crypto is a better bet than gold, which is not only inconvenient, but difficult to use as well. While Buterin asserts that such characteristics make gold less appealing, some crypto opponents argued that gold is better, because unlike the Ethereum blockchain, it is not controlled by only a few entities.
Decentralized Issuer of Money
The Ethereum blockchain co-founder, Vitalik Buterin, waded into the crypto-versus-gold debate after he posted a tweet suggesting that the former is a better bet than the precious metal. In his Oct. 26, 2022 tweet, Buterin slates author Zach Weinersmith’s assertion which implies that gold fits well with what crypto enthusiasts are advocating for.
As suggested by Weinersmith in his tweet posted on the same day, the only meaningful argument put forward by crypto advocates is their call for a decentralized money-issuing authority. Still, the author wondered why gold, given its qualities and characteristics, is not 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?
— Zach Weinersmith (@ZachWeiner) October 26, 2022
However, in pushing back against Weinersmith’s suggestion, the Ethereum blockchain co-founder reminded the author of the key areas where the precious metal seemingly comes up short. He said:
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.
Meanwhile, Buterin’s terse response to Wienersmith’s initial tweet drew an immediate reaction from both crypto opponents and advocates on Twitter. One user named Hayden.eth argued that “gold also has the risk of huge centrally controlled inflation due to asteroid mining.”
Crypto Not Tangible Like Gold
However, Twitter user Golden Knight appeared to question the Ethereum blockchain’s decentralization credentials, given the ongoing reports which suggest that only a few parties are controlling the chain. According to the user, having few parties controlling a blockchain potentially means they “could get control over the transactions worldwide.”
One supporter of gold appeared to question the wisdom of using digital currencies in an era characterized by power outages. According to the user, gold is a better alternative because unlike crypto, it is tangible.
Twitter user Levraham Spreadsmith, a self-proclaimed “optionality maxi,” appeared to use a reworked version of Buterin’s tweet to attack the Ethereum blockchain.
“Ethereum is incredibly inconvenient. It’s difficult to use, particularly when transacting. It can’t be made into a water bottle like stainless steel. At this point, Ethereum has less adoption and a lower market cap than stainless steel, so stainless steel is the better bet,” Spreadsmith argued.
The user also went on to list industries where the ethereum blockchain is not needed but where stainless steel is widely used.