Barry Silbert: Fiat and gold will sink to obscurity as Bitcoin rises

15 Jul, 2019 | Updated: 15 Jul, 2019
by Will Heasman
Barry Silbert: Fiat and gold will sink to obscurity as Bitcoin rises

 In a recent interview on Inside the ICE House, a podcast produced by the world-famous Intercontinental Exchange, Barry Silbert founder and CEO of Digital Currency Group, noted that gold and fiat may soon be on their way out, as Bitcoin starts to appeal to a brand new generation…

Bye gold, buy Bitcoin

Within the discussion, Silbert suggests that Gold’s heyday is behind it, with millennial - and the great wealth transfer which lies in store for them - choosing a different route of investment to that of their ancestors:

“I think what many gold investors don’t seem to appreciate is that the next generation of investors, the next generation of asset allocators, do not view gold the same way that our parents or grandparents did,” says Silbert,

The crypto kingpin argues that an estimated $68 trillion in wealth will be handed down over the next few decades in the US alone, from Baby Boomers to Gen X, Gen Y and Millenials and that its unlikely that this wealth will remain in fiat or gold:

“I’m absolutely convinced that whatever of that $68 trillion is currently in gold, it’s not going to stay in gold. I’m not saying it’s going to Bitcoin but I know it’s not going to stay in gold. So if gold stops performing the way gold investors think it should in periods of high inflation or macro-economic dislocation, I think it’s game over. I think the next generation of investors are going to put their money elsewhere.”

Time is running out for fiat

While Silbert isn’t completely assured that the massive transfer of wealth will be filtered into the crypto industry, he believes that the medium of that wealth may change dramatically over the next few years, noting that every fiat currency has its expiration date:

“It’s clear that money is going digital, and it’s clear that in the future, physical cash is going to go away. And it’s also clear based on history that fiat currency tends to not exist into perpetuity. The average life of a fiat currency over the past 500 hundred is 27 years. So what that means is, on average, in 27 years, a government will destroy their currency or devalue their currency, typically through debasement or through war.”

However, Silber caveats, Bitcoin will unlikely replace fiat anytime soon. Regardless, the little by little the use cases for Bitcoin are increasing, countries struck with failing economies such as Argentina and Venezuela are finding respite in cryptocurrencies such as Bitcoin:

“It’s clear that something other than the local fiat currency would have real demand and real appeal.”

Will Bitcoin supersede gold in the decades to come? Let us know what you think in the comments below!

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