David Marcus, co-founder and CEO of Lightspark, said on Tuesday that Bitcoin (CRYPTO: BTC) is superior to gold, and the federal government should consider rotating a small portion of its bullion reserves into the apex cryptocurrency.
Marcus’ Bold Suggestion
During an interview with Bloomberg TV, Marcus said he’s all for selling gold to buy Bitcoin for the Strategic National Reserve.
“Bitcoin is so much better than gold. Come on. Like, it’s like it’s a no-brainer,” the former PayPal president stated.
Marcus, however, advised a slow and deliberate approach to this transition.
“The government should potentially rotate a very, very tiny slice of its gold reserves into Bitcoin reserves, but do it very slowly and deliberately and not rush into it,” he suggested. “That would be my preference, or don’t do it at all.”
Marcus argued that buying Bitcoin on a “large scale” could backfire if a new administration takes over and reverses course.
Bitcoin has significantly underperformed gold over the short and medium run, casting doubt on its oft-repeated “store of value” narrative.
| Asset | YTD Gains +/- | 1-Year Gains +/- | 5-Year Gains +/- |
|---|---|---|---|
| Bitcoin | -23.43% | -31.84% | +42% |
| Gold | +17.24% | +74.51% | +177% |
‘Long-Term Belief’ Is Crucial, Says Marcus
Marcus emphasized that Bitcoin is not a “short-term market play” and requires a long-term belief and vision.
“I think that for those people who have that long-term belief, they’ll be fine,” he said in the wake of a strong bearish sentiment around the asset.
The Pros And Cons
President Donald Trump’s executive order from last year established a National Bitcoin Reserve funded by forfeited assets, with a provision to develop budget-neutral strategies to acquire additional BTC. Sen. Cynthia Lummis (R-Wyo.) has proposed selling or revaluing U.S. gold certificates to fund the purchases.
Data shows that a 5% capital rotation from gold into Bitcoin could lift BTC’s price to roughly $242,000 per coin. However, critics
Critics, however, warned that offloading over 8,000 tonnes of U.S. gold reserves could tank global prices and erode trust in national holdings.
Moreover, large-scale Bitcoin purchases, as Marcus pointed out earlier, might also trigger extreme volatility, pushing prices higher during accumulation and risking sharp reversals later.
Price Action: At the time of writing, BTC was exchanging hands at $67,114.14, down 2.74% in the last 24 hours, according to data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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