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Oil Isn’t a Store of Value, Bitcoin Is, Says Crypto Billionaire

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    The Oil reserves have surged with the decline in demand due to the pandemic situation. Hence the government offers bonds backed by oil reserves, but a crypto Billionaire says Bitcoin is a better investment option than Oil.

Bitcoin is a Store Value More than Oil

Cameron Winklevoss, the co-founder of Gemini exchange, took on twitter to advocate bitcoin yet another time. Amid the fall of almost all the sectors due to the pandemic situation, many believe bitcoin to be a safe investment.

In the recent tweet, Winklevoss says that bitcoin has more store value than oil which has witnessed a plunge in demand in recent times. 

With the growing adoption and surging prices, Winklevoss pushed one of the favorite digital assets as the most scarce asset ever, Bitcoin. At the press time, Bitcoin is trading at $11753 against USD with a little surge of 1.56 percent within the past 24Hrs. However, the key argument of Cameron is that Bitcoin’s max supply is limited and known whereas its hard to analyze the scarcity of other traditional assets such as Gold and Oil.

You may find this interesting – Bitcoin at $200 Billion Market Cap Shines with Hedge Funds Hitting $5 Bln Mark

Bitcoin – The More Scarce Asset 

The ongoing critical economic phase has left for the investors to hunt for a reliable asset to invest upon. The less demand in oil has forced governments like Iran to offer security bonds backed by oil. 

Conversely, the co-founder of Gemini says bitcoin is a better option than oil. Bitcoin has more store value and it’s more scarce than oil. However, the crypto followers agreed to his point, but some of the users marked their disapproval.

World Oil demand Fell Steeply

According to a recent statement by the Organization of Petroleum Exporting Countries(OPEC), oil demand has declined worldwide. This is due to the ongoing COVID-19 crisis, which had left almost the whole world under a lockdown.

However, the decline in the demand would be recovered in the following months as many countries have eased their lockdowns. Therefore, the oil demand is expected to bounce back by next year. 

In a nutshell, the COVID-19 pandemic has affected every sector inversely. Henceforth, the investors are in search of ‘safe havens’ for their funds. Therefore, as said by Winklevoss, Bitcoin could be a better option as the digital asset is expected to outperform all other traditional assets in the coming days.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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