$BTC
Satoshi Nakamoto's presidential candidate made a statement on Bitcoin – BTC or gold?
Nick Szabo, a cryptographer and computer scientist sometimes associated with Satoshi Nakamoto in the cryptocurrency world, compared Bitcoin and gold in terms of value, storage, and transfer.
Szabo argued that Bitcoin has a number of significant advantages over physical gold, especially for retail investors.
According to Szabo, Bitcoin is "slightly cheaper" than physical gold when it comes to self-custody for individuals. This assessment takes into account storage costs and security risks. He also noted that Bitcoin's transfer process is much faster and cheaper than gold in terms of verification costs and global consensus.
He pointed out that the additional costs associated with the transfer and verification of physical gold are more burdensome and expensive compared to the digital verification processes on the Bitcoin network.
Szabo stated that for institutional investors, the situation is more balanced. He noted that the trust and control issues associated with institutional Bitcoin custody limit the price advantage, and therefore Bitcoin is neither significantly cheaper nor significantly more expensive than gold for institutions.
He added that in corporate custody processes, the key cost drivers are trust infrastructure, regulation, and operational controls.
Szabo argued that the costs of self-custody of Bitcoin could be significantly reduced for both individuals and institutions thanks to technological advances. However, he noted that these technologies are still maturing, have not achieved widespread adoption, and require a support mechanism significantly different from existing institutional trust structures.
He also emphasized that Wall Street and banks' long-standing reliance on centralized custody has slowed this transformation.
