In the course of their conversation, he made the remark to Zach Weinersmith, who is the author of Soonish. Zach Weinersmith posed the question to Buterin about the merits of cryptocurrencies and other forms of digital assets in comparison to gold.

Buterin responded by stating that cryptocurrency and other types of virtual digital assets are a "better bet" than traditional assets such as gold, despite the fact that cryptocurrency has less adoption overall. The co-founder of Ethereum also mentioned that using gold is difficult and that its pricing structure is extremely inconvenient.

Buterin went on to say that safe storage methods, such as multisig, which are cryptocurrency wallets that require a number of signatory parties in order to permit a buy or sell order, are not being utilized by Gold. When it comes to investors looking for the safest asset to purchase as a good investment, whether it should be crypto or gold, there is a long and raging argument about which one should be purchased.

The correlation between Bitcoin (BTC) and gold reached its highest level in forty days last week, which coincided with the ongoing discussion regarding the desirability of safe-haven assets in light of the current state of the macroeconomy.

According to a new study conducted by Bloomberg analyst Mike McGlone, in light of the fact that ETH may have experienced a better correlation with stocks, Gold and treasury bonds are likely to follow in Bitcoin's footsteps regarding its direction.

Some people believe that the correlation between the SP 500 index and BTC is closer to 100%. However, other economists from the IMF have stated that the correlation between the crypto market and equity market in certain regions of the world has increased by a factor of ten in recent years.

According to Vitalik, the Volatility of Cryptocurrencies Will Level Off Like Gold

Despite the fact that the CEO of Ethereum does not consider gold to be a more advantageous investment than bitcoin, the volatility of bitcoin continues to rise. However, he believes it will stabilize like Gold.

During an interview on the current state of cryptocurrency markets and the prospects for the blockchain industry's future, Buterin predicted that the volatility of cryptocurrencies would become more like that of gold.

He also discussed proof of stake and proof of work, as well as the reluctance of Bitcoin holders to accept the volatility of the cryptocurrency. Also, while speaking with blogger Noah Smith for an interview, Vitalik admitted that he was surprised that the recent bear market in cryptocurrencies hadn't occurred earlier than it did.

He continued by saying that he was aware that the prices of cryptocurrencies would fall when they were high but that he did not know when this would occur. On the other hand, he stated that the digital asset that is virtual is operating in the expected manner.