Max Keiser: Gold is "toilet paper" for the rich, Bitcoin for the poor

Max Keizer: Warren Buffett is the biggest

People will rush to buy Bitcoin (BTC), because there won't be enough gold to sell to everyone due to coronavirus effects, Max Keiser predicts.

In the latest episode of the news program Keiser Report On March 31, Keiser said that the Covid-19 pandemic would encourage billionaires to buy gold as a safe haven.

Keiser: everyone will rush to BTC

Once the supply of gold is bought out and stored, the only alternative left is Bitcoin.

He said:

"I predict - and this is not just a final use case but also a final irony, that once people realize they can't buy gold, they will start rushing into Bitcoin."

The basis for this statement by Keiser is a word report Bloomberg on March 25, which warned the gold industry is "facing unprecedented chaos" due to soaring demand.

As Toiyeubitcoin reported, the price of precious metals has witnessed a major volatility in 2020. From a low of $ 1,469 just two weeks ago, the market has pushed the gold price to a high of $ 1,629 - recording a profit of 10, 9% in just one week.

1-year chart of Bitcoin and gold. Source: Skew
1-year chart of Bitcoin and gold. Source: Skew

Covid-19: Is gold the next "toilet paper"?

Gold has some drawbacks compared to Bitcoin. Contrary to cryptocurrencies, moving gold is expensive and risky, especially across borders and often needs a trusted third party to store. Unlike on the Bitcoin blockchain, there is no way for the market to know in real time whether a particular gold unit is real.

Gold is also affected by the phenomenon that has affected every currency in history, with the exception of Bitcoin, which is the higher the price, the more people try to push the supply up.

As Saifedean Ammous emphasized in his book "The Bitcoin Standard", it is impossible to increase the supply of Bitcoin, even if the price increases significantly, due to the currency's difficulty adjustment feature.

On the topic of supply, Keiser Report added that this time, unlike the 2008 financial crisis, gold miners were shutting down because of the corona vurus, ironically this had smashed the opportunity to increase resources. bow of precious metals.

“We will probably face a serious crisis in the gold market, just like in the market toilet paper, ”Said Stacey Herbert - co-host of the Keiser Report.

Keiser also stated earlier that:

"Remember: billionaires think of gold and silver the way unemployed people think of toilet paper."

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According to CoinTelegraph
Translated by ToiYeuBitcoin

About My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently. Mr Cuong.
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