The Co-Founder & Partner of CryptoOracle, Lou Kerner seems to believe firmly that Bitcoin is well on its way in replacing Gold as the dominant store of value. One of the first Crypto Venture Capitalist was quick to note that Bitcoin’s market capitalization has already managed to surpass that of silver. His views are not subject to change as he told Bloomberg that:
“Bitcoin managed to evolve into a store of value. For the last few centuries and today have had gold as the main store of value. It’s no secret to anyone that the gold market is valued at slightly above $8 trillion. As the year ends, Bitcoin’s market cap is a little above $60 billion. In the future, I have no doubt that Bitcoin will have an incredible opportunity to replace gold as the main store of value.”
Lou Kerner stated back in August that Bitcoin would eventually supplant gold as the most trusted store of value. He also mentioned that no matter what the current market state is, cryptocurrencies and Blockchain technology will eventually prove to be a far more disruptive technologies than the Internet ever was.
“Every revolution is less ground-breaking than the next. This is why I believe the disruption from cryptocurrencies is going to surpass that of the Internet. I can also say with certainty, that Bitcoin is an early leader and like Yahoo back in the day, it’s a massive thing, but not THE thing at the moment. I can assure you that in 20 years, it will be THE thing and it will be off-the-charts.”
In the future Bitcoin could become the dominant Store of Value
The founding partner of CryptoOracle was very keen to share his insight on why the market saw an 80% drop from last year’s all-time high. Kerner explained that the market was left unchecked and got ahead of itself. The main culprit should be crony capitalism.
He also mentioned “Amara’s Law” in regards to Blockchain technology. This is referring to the impact of all ground-breaking technological advancements. It’s greatly overestimated in the short run, but also underestimated in the long run.
Kerner is also a large critic of the US dollar, even going as far as to call it a Ponzi scheme, mainly because of the infinite printing. When asked about why Bitcoin will replace the dollar, he responded:
“Gold has been reliable and had a 5000 year run. However, history teaches us a 100% of the currencies which existed until 300-400 years ago, have all went to zero. There is absolutely nothing different about the US dollar or any other fiat currency out there. In time all of them will be revealed to be Ponzi schemes.”
On the other end of the spectrum, financial analysts like Gary Shilling refer to cryptocurrencies as a Ponzi scheme. Shilling stated that Bitcoin can in no way be treated as a currency because:
- Bitcoin is not a store of value
- Bitcoin is not a medium of exchange
- Bitcoin haven’t reached the state of mass adoption
Many prominent figures like Jack Dorsey, the CEO of Twitter and Peter Thiel, the co-founder of PayPal disagree with Shilling and firmly believe that cryptocurrencies will inevitably replace everything else.