World Gold Council CEO David Tait says Bitcoin (CRYPTO: BTC) is going to zero, calling it “pure instinct” with no reasoning behind the view.
Gold Council CEO: Bitcoin Doesn’t Offset Risk Assets
Tait explained on Tuesday that Bitcoin correlates with risk assets during crises instead of offsetting them as intended.
He believes Bitcoin was meant to disassociate itself from risky assets but hasn’t delivered on that promise.
“I thought it was meant to be an offset, something that you could compensate for having exposure to risky assets,” Tait stated. “It didn’t really do that to that extent,” he added.
He also argued that investors should hold both gold and Bitcoin if they have either, since the assets offset each other. However, his personal view is that Bitcoin won’t sustain in the very long term.
When Asked What Would Change His Mind: Nothing
When pressed on what would persuade him to change his Bitcoin-to-zero view, Tait admitted he didn’t know if anything could shift his opinion.
He sees use cases for stablecoins at the institutional level but remains unconvinced on Bitcoin’s longevity.
“It’s just my personal opinion. Just instinct as a trader,” Tait explained. He emphasized there’s no analytical reasoning behind the view—purely gut feeling.
Tait acknowledged Bitcoin works fine at the moment and has proven successful. BlackRock’s IBIT reached $70 billion in AUM in 341 days, five times faster than the original gold ETFs, which took 4.6 years.
Gold Driven By Sovereign Debt Fears, Not Wars Or Tariffs
Tait argued gold’s rally from $1,500 to $5,000 stems from fears that U.S. and global sovereign debt will become unsustainable.
Wars, tariffs, and interest rates create transitory movements, but the consistent driver has been ever-increasing debt.
“I don’t believe gold has really been driven by wars, interest rates, and tariffs,” Tait said.
The U.S. is about to go through $1 trillion worth of annual debt repayment, and if the yield curve shifts with inflation spikes, the cost could run away.
Asian central banks have been the main driver over the last three years, accumulating gold to stabilize their vulnerable economies and currencies. They’re looking at the incredible amounts of debt accumulated worldwide.
World Gold Council Building Gold-As-A-Service Platform
Tait revealed the World Gold Council is creating a gold-as-a-service platform to make the physical gold market accessible through a digital layer.
The platform will allow the crypto community to create gold-backed products without custody and compliance complexities.
The platform should have proof of concept by year-end, with a white paper already published online inviting the crypto community to build products on the infrastructure.
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