Recent comments by Adam Back raise questions about the future of gold amidst the impending large supplies of the metal from asteroid Psyche 16.
Asteroids and Potential Threats to Gold
Asteroid Psyche 16, located between Mars and Jupiter, is believed to contain enough gold worth around $700 quintillion. This could lead to market saturation and a crash in gold prices. According to Samson Mow, CEO of JAN3, the potential influx of gold could cause inflation in the market, a situation Bitcoin is immune to as its supply is capped at 21 million coins.
Elon Musk's Support for Bitcoin
Elon Musk has once again drawn attention to Bitcoin by stating that 'fiat is hopeless'. His comments have bolstered confidence in the cryptocurrency market, particularly in light of his support for Bitcoin through the proposed 'America Party' aimed at reducing national debt.
Comparing Bitcoin and Gold
Gold's long-standing status as a safe haven asset may be challenged by the potential of market saturation from Psyche 16. In contrast, Bitcoin offers a transparent and deflationary model, making it a serious competitor to gold. Adam Back emphasizes that Bitcoin's fixed supply model strengthens its position as a reliable store of value.
Given the potential changes in the gold market and the support for Bitcoin from figures like Adam Back and Elon Musk, there appears to be a trend that could signify a significant shift in the perception of these assets.
