The grayscale crypto investment firm recently started the initiative of promoting Bitcoin through a TV commercial ad and within 24 hours around 100,000 people viewed the ‘Drop Gold promotion.’ Grayscale wanted to promote the leading cryptocurrency of the world uniquely and used media platform to attract customers and to spread information about bitcoin. Now the Gold Council has come forward and hit back at the ‘#dropgold’ campaign and claimed that
“Cryptocurrencies are no replacement for gold”.
Further, the World Gold Council mentioned that Gold is used as a store of value for over thousands of years, an old and safe method adopted by most of the people to make an investment, whereas Bitcoin is the emerging technology which has managed to gain the popularity as ‘digital gold’ and used only as a currency.
Investment Research Manager at World Gold Council, Adam Perlaky, attempted to explain in a post by mentioning that blockchain and cryptocurrencies technology is interesting ones, but they cannot replace gold, practically or theoretically.
Adam Perlaky highlighted some important points relating to gold in his post and to indicate that gold still remains the first choice than Bitcoin. The reasons are as follows, as per Perlaky post:
• Is less volatile
• Has a more liquid market
• Trades in an established regulatory framework
• Has a well-understood role in an investment portfolio
• Has little overlap with cryptocurrencies on many sources of demand and supply
• Is a safe-haven investment.
He also accepted the fact that Bitcoin as a digital currency, existing in the world for over a decade while gold has its presence from 600 B.C. He further said they continue to accept the emerging technology and their innovation in the crypto and blockchain world and firmly believes that they will play an important role in the future. He highlighted once again that
“cryptocurrencies are not a replacement for gold and gold should remain a component in all portfolios.”
There were other points included in his post like gold trades at 100x in volume, more than bitcoin on a daily basis. The formal crypto regulation is relatively less, and this is creating a few problems in the crypto world. He even outlined the history of gold and the use of precious metal by various industries. He concluded by saying that gold is the best investment vehicle at the movement.
The comparison between gold the precious metal and Bitcoin the leading cryptocurrency of the world all started by a commercial ad #dropgold. The campaign was aired on the TV so as to reach important cities of US. It’s a small funny video that promotes bitcoin over gold. The video tells investors that
“in a digital world they should not allow their portfolios to be weighed down by gold and digital currencies, like Bitcoin, are the future.”
The #dropgold campaign is launched by Grayscale Investment a New York-based crypto asset investment firm. The #dropgold commercial states that cryptocurrencies are better than traditional gold due to robust security; they have utility and are borderless.
The main intention of starting this unique initiative according to Barry Silber was to target the older generation and create awareness about Bitcoin.