Grayscale Investments, a global leader in cryptocurrency asset management have started a “dropgold” campaign. DropGold is more than just a hashtag, it’s aim is to convince investors to abandon gold and learn about the benefits of Bitcoin as a digital store of value. A blog post states that “gold is overrated, outdated, and inflated. Gold’s own update is long overdue”.
The campaign started with a bang and included a television advert. The website, DropGold.com went live yesterday and there’s an upcoming debate to look forward to. The company planned to be provocative to counter the “intense marketing campaigns promoting valuable metals”.
They are aiming to spread awareness of the benefits of Bitcoin in comparison to gold. “In a digital world, gold shouldn’t weigh down your portfolio”, says the voiceover in the entertaining television advert, but Grayscale are aware that it will take some time to change people’s minds.
“We’re going after a narrative around gold being where investors should go when markets turn south or as a hedge against inflation,” said Grayscale Investments Managing Director, Michael Sonnenshein. “We’re highlighting the absurdity of gold”.
The investment company claims economic simulations show that redistributing just 5% of a gold portfolio into bitcoin could produce “an annualized return that was over 5% higher than that of a pure gold allocation, with lower volatility”.
Investments In Gold Will Move To Bitcoin
Grayscale is a subsidiary of the Digital Currency Group. It’s founder and CEO Barry Silbert, told the Associated Press that there is a generational shift in how individuals approach 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. 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”.