Why Bitcoin is Better Than Gold, with Wences Casares | Big Think

Why Bitcoin is Better Than Gold, with Wences Casares
Watch the latest video from Big Think:
Be part of Big Think Edge for unique movies:
Xapo CEO and founder Wences Casares explains why, after a 5,000 yr reign, gold has been surpassed by bitcoin as the best ledger.

Wences Casares is the founder and CEO of Xapo, bitcoin vault and pockets described by the Wall Road journal because the Fort Know of bitcoin storage.

Previous to founding Xapo, Casares launched Argentina’s first Web Service Supplier, Web Argentina S.A. in 1994, an organization he would go on to promote as a way to discovered the Argentine on-line brokerage Patagon in 1997. With Casares serving as Chairman and CEO, Patagon established itself as Latin America’s first complete Web monetary companies portal and expanded its on-line banking companies to the US, Spain, and Germany. Patagon was acquired by the Spanish financial institution, Banco Santander for $750 million in 2000.

Casares based Wanako Video games, which developed the award profitable recreation Assault Heroes honored as “Recreation of the Yr” for Microsoft Xbox Stay in 2006, and was later acquired by Activision.

In 2002 Casares alongside together with his companions based Banco Lemon, a retail financial institution for the underbanked in Brazil. Banco do Brasil, Brazil’s largest financial institution, acquired Banco Lemon in June 2009.

Wences Casares: Bitcoin is a brand new digital foreign money that’s maybe the perfect type of cash that we’ve ever seen. It’s essential as a result of most of us don’t perceive cash very nicely and maybe the idea that’s hardest for us to know about cash is that cash is and has all the time been a ledger. And folks usually ask: “What’s cash backed with?” And the reality is cash’s not backed with something. It has by no means been backed with something. The euro is just not backed with something particularly and neither is every other foreign money on the earth. And gold, for instance for that matter is just not backed with something both.

Some individuals assume that gold has worth as a result of we use it for jewellery however it’s truly the opposite means round. Gold is efficacious as a result of it’s very scarce and since it’s very scarce it has been the perfect ledger we’ve present in 5,000 years. In bitcoin we’ve one thing that’s nearly as good a ledger as gold, that means it’s extremely scarce. There’ll by no means be greater than 21 million bitcoin. It’s much more scarce than gold.However in historical past we’ve had this tradeoff between issues which have been very, superb retailer of worth like gold for instance and issues which have been good for fee just like the Portuguese escudo, the U.S. greenback, American Airline miles, or Fb credit. These issues are higher for fee however they’re not so good as a retailer of worth traditionally. And the issues which might be good for a retailer of worth like gold aren’t good for funds.

In bitcoin we’ve one thing for the primary time that’s extremely superior than something we’ve seen earlier than as a retailer worth and in addition as a type of fee.It’s arduous to have a rigorous dialogue about bitcoin with out understanding cash. And one of the best ways to know cash is to know the historical past of cash. Anthropologists agree that there’s no tribe, a lot much less a civilization, that ever primarily based its commerce on barter. There’s no proof. Barter by no means occurred. And that’s counterintuitive to most of us as a result of we’re taught in class that we first barter after which we made cash as a result of barter was too sophisticated.

Nicely, barter by no means occurred and that’s one of many key myths about cash. So then you definitely would ask the anthropologists, “So how did we do commerce earlier than cash if there was no barter? There was no commerce.” No, there was loads of commerce and the best way that commerce would occur is that permit’s say that somebody in our tribe killed a giant buffalo and I’d go as much as an individual and say hey, “Can I’ve just a little little bit of meat?” And that particular person would say “No” or “Sure, Wences, right here’s your meat.” And then you definitely would go as much as an individual and say “Hey, can I’ve just a little little bit of meat?” and that particular person stated “Sure, right here’s your meat.”And mainly all of us need to maintain monitor in our heads of what we owed different individuals or what our individuals…

Learn the total transcript at

Related Articles


  1. Gold is Fiat! And not scarce anymore , I am not crazy.
    Listen carefully
    Because Gold is owned by government central banks, So they will never let the price of gold run high, because it will be a great asset to own , and people will stop saving in local currencies.
    Governments hold gold and sell gold certificates, or as I call it , “fiat gold.” So gold in the market is basically fiat, if the price goes up , they print more certificates,
    On average 1 onz of real gold has more than 7 owners in paper.
    They have destroyed its scarcity nature.
    So gold is basically , a kidnapped asset. It is not interesting to own , it will never be. It will never skyrocket.
    Gold is not democratic and accesible to every one.
    Gold worked in the past , but in the scheme of modern life it is dull boring and and not safe place to store value unless , you want your value depreciated by real asset inflation

  2. I admire Wencase's motivations behind his efforts to make Bitcoin succeed. The financial wellbeing of his family and millions of others being subject to the whims, incompetence and in many cases, outright deceit and corruption of those who work in politics and government is something that needs to be dismantled and Bitcoin seems like it can work. There need to be more people like him with a functioning moral compass that's pointing towards a better system of currency for everyone in the financial world.

  3. Gold is real money and everything else is credit. Bitcoin might go to zero. Can’t make jewelry out of bitcoin. Gold is a status symbol, and when you hold a bar of gold, it gives you a warm feeling.

  4. Investing in Gold or other precious metals has been on for centuries, and this century, we have seen several ways to invest.
    Gold being one of the best investment still need proper understanding so that you won’t just fail or invest at the wrong time.
    2020 taught us that investing smart is the only way to survive, and the coronavirus global pandemic also shown to many that there are many ways to invest profitably.
    I was a fully-fledged gold investor addict before a friend of mine told me of a new goldmine (Bitcoin). Initially, I look at it as something not worth trying. I always warn my friend against it. I told my friend it will crash in 2018, and I never knew bitcoin was meant to transform the economy.
    I was not giving any interest to bitcoin, I talk it off all the time and always talk about investing in other assets, not until the coronavirus global pandemic occurs and crash the global market in March 2020, since then I look for ways to invest in other fast-rising assets, but still, the only asset that seems best to invest in is bitcoin.
    Since the crash in March, it has grown to x2 of the initial price, making it the best performing asset of this new Decade in 2020.
    I did not have much knowledge, so I contacted my friend to help me out, and he referred me to Nyberg Hansson, a professional trader and investor who guided me to my first-ever bitcoin investment. He equally guides me on how to trade cryptocurrencies to make good profit.
    Now I know why my friend called cryptocurrency the new goldmine, and thanks to Nyberg Hansson for helping me invest and trade cryptocurrency effortlessly.
    Now I am looking forward to attaining my target of 100BTC before the year-end.
    The best investment now to make good returns on profit in Bitcoin, and I will urge everyone to participate in it, and get professional help and advice from Nyberg by contacting him through [email protected] and WhatsApp +447723292381, and surely you will see the effectiveness of bitcoin to the economy.

  5. 5 years later … bitcoin has scalability problems, transactions take ages and are expensive, miles away from adoption. For now bitcoin can be digital gold, but not digital money.

  6. The irony is that to mine bitcoin (computers) and to use bitcoin (cellphones/computers), you have to use physical gold. Gold is in every cellphone and every computer; they would use another metal if it was cheaper, but gold must be used in computer and cellphone technology.

  7. The dollar is backed with the U.S. military; it is the worlds reserve currency. Any country that refuses to trade with the dollar,  the U.S. bombs them. North Korea and Iran and a couple small countries are the only ones not using the dollar and the U.S. is talking about bombing them and that is on national media. Of course the U.S. is saying its for other reasons. He said there will never be more than 21 million Bitcoins. If the miners of bitcoin decide to make it 42 million 10 years from now, then there will be 42 million Bitcoins.

  8. Hahaha I'm sorry but just in the first 0:43 seconds I realized this guy is clueless as to WHY Gold has ALWAYS been money.

    It fulfills the PROPERTIES that give intrinsic VALUE to gold that Bitcoin won't EVER have.

    These are:
    1)Durability (Bitcoin doesn't fulfill this either, since it exists in cyberspace and requires electricity to exist)
    5)Limited Supply (NOT true for Bitcoin. Do you think they won't "mine" more than 21 million if they're worth $100k?)
    6) Acceptability
    *7) Some people argue stability of value is ALSO ideal (Gold is worth because of it's physical properties and you can make at the least jewelry and other items). Bitcoin on the other hand doesn't have intrinsic value and it's value is determined by the forces of supply and demand.

    There are less than 300 known elements in the world… GOLD(AU) is one of them. Bitcoin exists only in cyberspace. If there is no electricity Bitcoin will cease to exist.

Leave a Reply

Your email address will not be published.

Back to top button