Vitalik Buterin says crypto-currencies are a “better bet” than “incredibly incongruous” gold

While Vitalik Buterin claims that these characteristics make gold less attractive, some crypto opponents have argued that gold is better because, unlike the Ethereum blockchain, it is not controlled by only a few entities.

Decentralized currency issuer

Ethereum blockchain co-founder Vitalik Buterin has waded into the crypto-versus-gold debate after posting a tweet suggesting the former is a better bet than the precious metal. In his tweet on October 26, 2022, Buterin took aim at author Zach Weinersmith’s assertion that gold is a good match for what crypto-currency enthusiasts are advocating.

As Weinersmith suggests in his tweet posted on the same day, the only valid argument put forward by crypto-currency advocates is their call for a decentralized currency issuing authority. Nevertheless, the author wonders why gold, given its qualities and characteristics, is not presented 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 opposing Weinersmith’s suggestion, the co-founder of the Ethereum blockchain reminded the author of the main areas in which the precious metal does not seem to be up to the task. He stated::

Gold is incredibly impractical. It is difficult to use, especially when transacting with untrusted parties. It does not support secure storage options like multi-sig. At this point, gold is less adopted than crypto, so crypto is the better bet.

Gold is incredibly inconvenient. It’s difficult to use, particularly when transacting with untrusted parties. It doesn’t support safe storage options like multisig. At this point, gold has less adoption than crypto, so crypto is the better bet.

– vitalik.eth (@VitalikButerin) October 26, 2022

Meanwhile, Buterin’s terse response to Wienersmith’s initial tweet prompted an immediate reaction from crypto opponents and supporters on Twitter. A user named Hayden.eth argued that “gold also has the risk of huge centrally controlled inflation due to asteroid mining.“

Crypto-currencies are not tangible like gold

However, Twitter user Golden Knight seemed to question the Ethereum blockchain’s decentralization credentials, given ongoing reports that suggest only a few parties control the chain. According to the user, the fact that a few parties control a blockchain potentially means that they “could take control of transactions worldwide.“

A gold supporter seemed to question the wisdom of using digital currencies in an era characterized by blackouts. According to the user, gold is a better alternative because unlike crypto, it is tangible.

Twitter user Levraham Spreadsmith, self-proclaimed “max optionality“, appeared to use a reworked version of Buterin’s tweet to attack the Ethereum blockchain.

“Ethereum is incredibly inconvenient. It is difficult to use, especially 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“, argued Spreadsmith.

The user also listed industries where the Ethereum blockchain is not needed but where stainless steel is widely used.