Bitcoin should be backed by gold. That’s what famed investor Mark Mobius suggested during an interview with CNBC. Mobius says if BTC is to have any intrinsic value, it needs to be backed by precious metal such as gold because Bitcoin is already digital gold.
A bitcoin backed by gold would alleviate the lack of ‘faith’ investors have in the first cryptocurrency coin. A problem investors doesn’t currently have with fiat and precious metals.
During the interview with CNBC’s Squawk Box on September 5, 2019, Mobius claims that bitcoin, in it’s current state, is too risky for institutional investors due to the lacked of tangible value underlying cryptocurrency assets.
Bitcoin is a cryptocurrency that really needs to be backed by gold to have any value, said famed investor Mark Mobius pic.twitter.com/q5hZ8Xwzxl
— Squawk Box (@SquawkCNBC) September 5, 2019
Mobius, the co-founder of Mobius Capital Partners refused to agree with the moderator that has any intrinsic value to investors presently and said that he would be heavily invested in Bitcoin if he was backed by gold,
“If there is a cryptocurrency that is really backed by gold, and that is, there is a meaningful agreement and some kind of modern thing of this connection, then this could be quite interesting.”
Joe Kernen, the host of CNBC’s Squawk Box disagreed by countered that there are no fiat or traditional currencies backed by gold or anything of that nature presently.
Mobius clarified that the public has a certain degree of faith in fiat currencies they don’t currently have in Bitcoin,
“The reason why people believe in the U.S. dollar is because they have faith that with dollars in their hands, they can buy something. So there’s a degree to which if cryptocurrency can enable you to buy something and you believe that to be the case, that’s fine.”
Mobius is heavily invested in tangible assets such as gold, and stated that cryptocurrencies and bitcoin will ultimately help attract more attention to precious metals.
Do you think a bitcoin backed by gold is a good idea?