Gold Council CEO Warns Bitcoin Could Fall to Zero Amid Lack of Institutional Backing

David Tait, the CEO of the World Gold Council and chair of the FMSB Precious Metals Working Group, has expressed concerns about the long-term viability of Bitcoin. According to Tait, Bitcoin's lack of institutional backing, public trust, and concrete applications makes it vulnerable to falling to zero.

Tait pointed out that Bitcoin remains highly correlated with high-risk assets and has failed to decouple from them or provide the risk hedge some investors expected. In contrast, gold has safe-haven characteristics and tends to move inversely.

Tait recommended that Bitcoin holders allocate part of their portfolios to gold as a hedge, citing its ability to mitigate potential losses. He distinguished Bitcoin from stablecoins, saying they have practical value in institutional and asset-collateralized uses, but lack the public trust associated with fiat currencies or central banks' backing.