Although gold and Bitcoin are considered similar asset classes because of their maximum supply, that of the precious metal may increase substantially in the following years if Elon Musk’s SpaceX decides to mine gold and other metals from asteroids.
While explaining the merits of Bitcoin to the popular Wall Street trader Dave Portnoy, the Winklevoss twins said that this can’t happen with BTC as it’s the only “fixed asset in the galaxy.”
SpaceX To Mine Gold From Asteroids?
According to this research, nearly 200,000 tonnes of gold were mined throughout history by the end of 2019. Although no one really knows how much of the precious metal still exists, gold has been regarded as an asset with a maximum supply. This scarcity has enabled the bullion to maintain its value over centuries and to serve as a payment method or a store of value.
After all, central banks and governments can’t just decide to mine (or print) more of it, as they do with fiat currencies. However, something similar is not entirely out of the question.
Earlier this year, NASA announced that Elon Musk’s SpaceX will launch a mission to a space rock made up of the core of a long-dead planet. The $117 million mission will launch on a Falcon Heavy rocket in July 2022 from Florida.
Unlike most rocky or icy bodies, the so-called Psyche 16 is suspected to be made of mostly iron and nickel and other metals such as gold, platinum, and copper. Although NASA reassured that there would be no mining of any metals, the implications of actually doing it would depreciate the price for every precious metal on Earth, according to a planetary scientist Lindy Elkins-Tanton.
She calculated that just the iron contained on Psyche 16 is worth about $10,000 quadrillion at today’s prices. Bringing all the iron, gold, platinum, and copper to Earth would “completely devaluate all holdings, including those of governments and could lead to the collapse of the entire economy.”
Can’t Find Bitcoin On Asteroids
Although NASA’s current plans don’t include any mining done on asteroids, Falcon Heavy has been developed to make such mining a reality. Consequently, if NASA and SpaceX change their minds, they can start mining asteroids soon.
And, it seems that the Gemini co-founders – Cameron and Tyler Winklevoss – believe Elon Musk could indeed do so soon. The twins recently spoke to the popular Wall Street day-trader Dave Portnoy, who asked them to educate him on the topic of Bitcoin.
The prominent BTC proponents said that in case Musk proceeds with mining gold from asteroids, this could exemplify the precious metal’s problem as “its supply is just not fixed.” In contrast, Bitcoin has a pre-programmed maximum cap of 21 million coins ever to exist.
— Cameron Winklevoss (@winklevoss) August 14, 2020
“Elon can’t change the supply of Bitcoin. It’s the only fixed asset in the galaxy.” – the twins asserted.
They added that the US dollar is turning into “toiler paper,” and people have to own a hard asset – either gold or Bitcoin. However, Elon Musk or other organizations which will eventually head to space will have the power to “destroy gold.”