While Bitcoin (BTC) maximalists may think of the leading cryptocurrency as the "digital gold," billionaire Frank Giustra believes the recent Greenland episode has fundamentally challenged this notion. He asserted that gold serves as a safe haven asset, whereas Bitcoin is a risk-on asset.
Giustra's Stance on Bitcoin and Gold
Giustra, a Canadian billionaire businessman, mining financier, and philanthropist, is known in crypto circles for his strong criticism of the Bitcoin accumulation model employed by Michael Saylor's MicroStrategy. He recently took to X (formerly Twitter) to reiterate his criticism of what he described as Bitcoin's "promotional style" driven by "greed and FOMO." However, he clarified that his critique is not directed against Bitcoin itself.
In response to a user who suggested that gold and Bitcoin complement each other as store-of-value assets, Giustra stated that Bitcoin is not comparable to gold. He pointed to the uncertainty surrounding Greenland and numerous previous examples as evidence for his assertion.
Analyzing Market Performance Amidst Geopolitical Uncertainty
The discussion intensified as the controversy surrounding the U.S. interest in Greenland escalated. President Donald Trump has been vocal about the island's strategic importance for national security, especially given the presence of Russian and Chinese ships in the vicinity. This geopolitical tension has led to threats of tariff wars against European countries.
During this period of "Greenland uncertainty," gold's price saw an increase of more than 7%. In contrast, Bitcoin's price experienced a decline of nearly 17% over the last three months. Gold's price even reached a new all-time high (ATH) of $4,689.39 per oz. At the time of writing, BTC was trading at $93,276.79, still 25% below its ATH of $126,080 reached in early October of the previous year.
Giustra argued that gold's upward trend and Bitcoin's downward movement amid the "Greenland uncertainty" clearly demonstrate that gold is a safe asset, while Bitcoin is a risk-on asset. He emphasized, "The facts on this are clear & indisputable."
"The facts on this are clear & indisputable."
Confiscation Risk: Gold vs. Bitcoin
When questioned about the possibility of gold confiscation, Giustra responded that Bitcoin is significantly easier to confiscate than gold. He cited the example of government Bitcoin reserves, which are often comprised of seized coins.
According to a U.S. President Donald Trump executive order, the strategic Bitcoin reserve will consist of BTC forfeited by U.S. federal agencies as part of asset seizures. Giustra further elaborated that Bitcoin is also easier to trace than gold, and desperate governments tend to choose the path of least resistance.
Despite Bitcoin's decentralized nature and the perception of user anonymity, various tools exist to track the flow of crypto funds through exchanges and wallets, making it more vulnerable to confiscation compared to physical gold.