Max Keiser: Gold is the toilet paper for the rich, Bitcoin is the toilet paper for the poor

Source: Cointelegraph Chinese, author: WILLIAM SUBERG

People will buy Bitcoin (BTC) in droves because they will not sell gold due to the coronavirus, Max Keiser predicts.

In the latest episode of the Keiser Report news show on March 31, Keiser said the coronavirus pandemic will prompt billionaires to turn to gold as a safe haven.

Keiser: People will flock to BTC “in droves”

Once the supply of gold is bought up and hoarded, the only option left is Bitcoin. He concluded:

“I predict that once people realize they can’t buy gold, they will start flocking to Bitcoin in droves. Not only is this Bitcoin’s ultimate use case, it’s also the most ironic.”

The claim is based on a March 25 report from Bloomberg, which warned that the gold industry is "facing unprecedented volatility" due to surging demand. As Cointelegraph reported, the precious metal has seen significant price volatility in 2020. The market has surged from a low of $1,469 two weeks ago to a high of $1,629, a 10.9% increase in just one week.

Bitcoin vs. gold 1-year chart. Source: Skew.com

Coronavirus: Is gold the next toilet paper?

Gold has many disadvantages compared to Bitcoin. It is costly and risky to transfer compared to cryptocurrencies, especially across borders, and often requires a trusted third party to store it. Unlike the Bitcoin blockchain, the gold market also has no real-time knowledge of whether a specific unit of gold is genuine.

Gold, in addition to Bitcoin, is subject to a phenomenon that has affected all currencies throughout history — the higher the price, the more effort humans put into increasing the supply.

As Saifedian Ammous points out in his book The Bitcoin Standard, due to the nature of Bitcoin being difficult to adjust (its supply is fixed at 21 million), its supply will not increase even if its price rises significantly.

Speaking of supply issues, the Keiser Report added that this time, unlike the 2008 financial crisis, gold mines are being shut down due to the coronavirus, ironically stifling any chance of increasing gold supply.

Co-host Stacey Herbert concluded: "We could be headed for a serious crisis in the gold market, just like we are in the toilet paper market".

Kaiser previously stated:

“Remember: billionaires view gold and silver like the unemployed view toilet paper.”

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