Gold vs crypto: Nick Szabo champions Bitcoin as a reserve currency

10 Jan, 2019 | Updated: 10 Jan, 2019
by Will Heasman
Bitcoin
Gold vs crypto: Nick Szabo champions Bitcoin as a reserve currency

At the recent Bitcoin summit in Israel, famed cryptographer and inventor of smart contracts, Nick Szabo, shared his thoughts on Bitcoin as a refuge from censorship, and a replacement for gold.

During the conference, Szabo stated that sanctioned countries and economies in dire straits will turn to the digital gold as a sanctuary.

Szabo is of course, right on the money. Countries such a Venezuela are a prime example of this, with both sanctions from the US on their gold sector and their ever failing economy; pushing citizens and business alike to adopt cryptocurrency as a safe haven from hyperinflation and a medium of exchange.

 

At the same conference Szabo stated that central banks will end up using bitcoin as a reserve currency, something which has been echoed by many of his contemporaries:

“The other problem with gold reserves is that they’re physically vulnerable. When the Nazis conquered countries in Europe, the first place they went to was a central bank’s gold reserves.” Szabo said.

Apparently, this was in response to a statement from Israel’s head of the National Economic Council, Avi Simhon, that Bitcoin was “inefficient" and would soon become obsolete.

Andreas Antonopoulos apparently shares the same Ideals as Szabos believing that BTC will become the future reserve currency:

"I think it will be one of the many reserve currencies that can be used to underpin value on other things. There doesn't have to be only one anymore." He said in a recent Q&A

Read more: Andreas Antonopoulos: Bitcoin will go beyond gold, reserve currencies old newsWill Bitcoin replace fiat money?; The Bitcoin standard? BTC to hit $100,000 if it becomes a "good store of value"


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