In today’s digital world, traditional ideas about investing are undergoing a radical transformation. Gold is often utilized by investors as a popular hedge against market dislocations, but is there a better store-of-value asset for our digital age? It’s time for investment portfolios to reflect that Bitcoin has become digital gold for today’s forward-thinking investors.
Grayscale Investments, a global leader in digital currency asset management, today introduced #DropGold, a campaign focused on the emergence of Bitcoin as an alternative to investing in gold. The campaign aims to shift the mindset around modern investment opportunities and portfolio allocations. #DropGold is not only about building awareness around Grayscale’s flagship Grayscale Bitcoin Trust (OTCQX: GBTC) but also about promoting the emergence of Bitcoin as a viable digital asset. Grayscale To Investors: Drop,Grayscale To Investors: Drop, Grayscale To Investors: Drop, Grayscale To Investors: Drop
“There is a generational shift in how individuals are approaching investing. We strongly believe that investments in gold will be reallocated to Bitcoin as Baby Boomers begin transferring their wealth to a younger generation of investors, one that wasn’t raised on the gold standard,” said Barry Silbert, Founder and CEO of Digital Currency Group and its subsidiary Grayscale Investments. “The gold industry has done a fantastic job of marketing an overpriced metal, but Bitcoin has superior physical properties and market utility. I believe that Bitcoin will become the store-of-value for our digital age.”
The #DropGold campaign features a commercial that begs the question: Why is gold still in your portfolio? The commercial follows two heroes who escape an apocalyptic, gold-obsessed setting by embracing a digital future. Special effects are intended to further illustrate how gold weighs down everything from people to helicopters, while a voice-over emphasizes the benefits of Bitcoin including speed, security, and efficiency.
“We wanted to create a compelling, provocative, and illustrative story to showcase the absurdity of gold in our modern world. #DropGold is a call to action – investors should reassess and reallocate the gold in their portfolios, invest in Bitcoin, and reap the benefits of a diversified investment strategy,” said Michael Sonnenshein, Managing Director at Grayscale Investments.
Through research and portfolio simulations, Grayscale believes that shifting a portion of a portfolio’s gold investment into Bitcoin could improve performance and enhance diversification. According to Grayscale’s simulations, dropping even 15% of a portfolio’s SPDR Gold Trust allocation and replacing it with Bitcoin** produced an annualized return that was over 15% higher than that of a pure gold allocation, with comparable levels of volatility.
Grayscale provides opportunities for investors to gain exposure to digital currencies and Grayscale Bitcoin Trust (GBTC) provides direct exposure to Bitcoin through a traditional investment vehicle. GBTC is the only publicly quoted U.S.-based Bitcoin investment product as well as the largest Bitcoin investment product globally, holding more than 1.2% of the outstanding Bitcoin supply.* GBTC is publicly quoted and can be invested in through most brokerages with access to U.S.-listed securities.
#DropGold video advertisements will run on digital and social platforms as well as linear TV, targeting key demographics across major U.S. cities. Additional creative will run on digital and social channels. The campaign also includes the creation of a newly created branded site, DropGold.com, which offers insights, infographics, and other resources to educate investors about Bitcoin and the investment opportunity. Grayscale collaborated with several firms in the creation of #DropGold including Honor Society, which developed and produced the advertisement, as well as Vested, Bandit, Red Lab, MadHive, and Q8 Research.
To learn more on why digital currencies like Bitcoin are the future and to access the creative assets of Grayscale’s #DropGold campaign, please visit https://dropgold.comand follow the conversation via #dropgold.
*as of April 4, 2019
**full portfolio simulation details are included in Grayscale’s Bitcoin and the Rise of Digital Gold report, available at https://grayscale.co/insights. All simulations are subject to the disclaimers therein.
About Grayscale Investments, LLC
Grayscale Investments is the world’s largest digital currency asset manager. With a proven track record and unrivaled experience, we give investors the tools to make informed investing decisions in a burgeoning asset class. As part of Digital Currency Group, Grayscale accesses the world’s biggest network of industry intelligence to build better investment products. We have removed the barrier to entry so that institutions and individual investors can benefit from exposure to digital currencies. Now, forward-thinking investors can embrace a digital future with an institutional grade investment. Grayscale is headquartered in New York City. For more information on Grayscale, please visit www.grayscale.co or follow us on Twitter, @GrayscaleInvest.
‘Source of Truth’ — Winklevoss Says Bitcoin Is More Than Digital Gold
Cameron Winklevoss— one half of the eponymous family office Winklevoss Capital and co-founder of the Geminicrypto exchange — says Bitcoin’s (BTC) possibilities go beyond digital gold.
In a tweet posted on Oct. 23, Cameron argued that:
“Because Bitcoin is open source software, its possibilities are boundless. I often talk about gold as a target market cap, but that’s really just the beginning…it’s digital gold, source of truth, etc…”
A Shared, Single “Source Of Truth”
Cameron’s argument aims at going beyond the commonplace analogy of Bitcoin with gold, whose proponents compare the scarcity of the precious metal with Bitcoin’s finite supply to emphasize the cryptocurrency’s role as a digital store of value.
While accepting this perspective, his accent lies on the revolutionary potential of the cryptocurrency’s open-source software, which establishes a decentralized digital public record of transactions that is immutable, secure and anonymous: a shared, single source of truth.
In information systems, a Source of Truth (SOT) is a term used to denote a trusted data source that gives a complete picture of the data object as a whole.
This robust and trustless model for ensuring data integrity between a massive network of participants is, then — in Cameron’s view — the foundation for the asset’s unique promise.
Rooting Out Falsity
Cryptocurrency commentators had previously implicitly conjoined these two perspectives — on scarcity and integrity — particularly in response to the forgery crisis that plagued the gold industry this summer.
This August, roughly 1,000 fake gold kilogram bars were found in the vaults of major banks such as JPMorgan Chase — with many more thought likely to have been in circulation.
As One Bitcoin Advocate Argued At The Time:
“Would you accept gold as payment from someone you didn’t trust, without verifying the weight and purity of the gold before shipping your products to them? Think of a Bitcoin full node as a ‘fake Bitcoin detector’ — all you need to verify ‘purity’ of your Bitcoin is a Raspberry Pi.”
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