One of the most discussed topics in the cryptocurrency world in 2024 is the rise of Bitcoin Exchange Traded Funds (ETFs). According to Darin Feinstein, the physically backed Bitcoin funds are safer than the gold ETFs. The founder of Bitcoin miner Core Scientific sees more advantages for Bitcoin than gold when it comes to ETFs.
Feinstein trusts the Bitcoin system
Darin Feinstein is the founder of the largest public Bitcoin miner in the world. The company Core Scientific went bankrupt at the end of December 2022 due to difficult market conditions. High energy prices and rising energy prices play a role here Hashrate the most important role.
Feinstein believes in Bitcoin’s (BTC) unique accounting system. According to him, Bitcoin ETFs remain superior as they only hold Bitcoin to cover the fund. This is not always the case with raw materials.
The Bitcoin Spot ETF focuses solely on the immutable ledger called the blockchain. According to Feinstein, it is “the most advanced accounting system ever available to humanity.”
“A Bitcoin ETF proves through the Bitcoin network that it holds the Bitcoin – this is, in my opinion, a much safer investment than investing in another ETF, such as a gold ETF, where you cannot know in real time “whether it really contains the gold or whether it has been authenticated,” Feinstein said in an interview with Cointelegraph.
Bitcoin’s ledger is immutable, unlike gold
Despite the bankruptcy, the company recently decided to expand. For example, the crypto company has signed an agreement with popular ASIC manufacturer Bitmain. The aim is to strengthen dominance within the mining ecosystem, despite abandoning 27,000 mining machines a year ago.
According to Feinstein, for gold there is no reliable method for verifying the storage, verification, control and authentication processes for all physical gold in existence. In his opinion, this includes all information about the location and administration. “It is said that there is $11 trillion worth of physical gold on Earth,” says Feinstein. It refers to all federal storage facilities that have not been publicly audited for around 70 years.
“Investments that are self-verifying, authenticating, proving reserves, and publicly visible 24/7 have never existed until the advent of the Bitcoin ETF,” Feinstein said.
According to the Bitcoin proponent, all accounting is influenced by the human factor of those who record the data. According to him, this may have happened intentionally due to fraud or unintentionally due to errors.
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