Bert and Peter Slagter: Gold and Bitcoin can complement each other

Gold and Bitcoin can coexist as alternative asset classes because they have different properties. The precious metal has proven itself as a safe haven throughout history, while Bitcoin can become the basis for an open and neutral platform on which one can build various applications. And where gold has a strong presence in the physical world, virtual currencies can play an important role in the digital age. That's what the brothers Bert and Peter Slagter, authors of the book, say Our Money is Broken, in an interview at Holland Gold.

In the conversation, both gentlemen refer to high inflation and the loss of purchasing power due to low interest rates. At the moment, inflation is around six percent, while interest rates are close to zero percent. As a result, savings lose about half of their purchasing power in twelve years' time, Bert Slagter notes. He added that inflation was already as high in 1990, but that saving still yielded eight percent interest at the time. At that time, it was possible to grow wealth by saving, but that is now out of the question. Savers are now more or less forced to look for alternatives.

According to both men, central banks have backed themselves into a corner by lowering interest rates further and further and starting a bond-buying program. Now they have almost no tools to adjust the economy, while debts continue to rise. As a result, the money system has become increasingly fragile. This is also reflected in the increase in value of Bitcoin. That has become a kind of vote of no confidence in the current money system. "If every individual, every household and every business has the ability to move wealth to Bitcoin, then that limits central banks in how badly they can make their money.", concludes Bert Slagter.

Gold vs Bitcoin

Due to the combination of rising inflation and extremely low interest rates, we are seeing a flight to alternatives such as gold and Bitcoin. These are both assets that governments cannot print and that can therefore offer protection against currency depreciation. In addition, gold has already built up a strong track record as a tool to guide wealth through a crisis. Peter Slagter notes that gold has proven to be a safe haven, but that Bitcoin has the potential to play a much bigger role in the financial world. In this way, Bitcoin can become a neutral and open platform on which various financial applications can be built.

That is why, according to him, it remains interesting to own both precious metals and crypto coins. Cryptocurrencies are also interesting for asset managers. It is an entirely new asset class that allows them to add extra diversification to their portfolio. In addition, Bitcoin has a huge upside potential, if the adoption of cryptocurrencies increases and more people want to own Bitcoin. Because the supply of the virtual currency is limited, the price can then rise enormously.

Whether the masses will actually step into Bitcoin, only time will tell. However, both gentlemen agree that younger generations are making the transition to this new technology more easily, because they have grown up in a digital world. They see less distinction between a physical possession such as a gold bar and a virtual possession such as Bitcoin. The authors of the book Ons Geld is Stuk discuss this and much more in the conversation with Holland Gold.

Click here or on the image for the video

Bert and Peter Slagter about money and Bitcoin (click on image for the video)