The idea of Bitcoin as “digital gold” has been wandering around in different blockchain-related media. The “gold” metaphor implies that Bitcoin should be seen as the most valuable store of value, like gold used to be some time ago. The phrase sounds good indeed, but a share of distrust still stays on. So let us hear what experts think of Bitcoin as a new-age gold.
Jonathan Reichental, CEO of Human Future, thinks that gold is too big a title for Bitcoin yet. The core feature of gold is its stability and wide recognition by governments and organizations. So until Bitcoin reaches relative stability and balances its rate volatility, it can hardly bear a title of a value store.
This looks like a very cautious opinion. Still, Tone Vays, a top crypto trader and analyst protests saying that though the coin is volatile, “its ‘unconfiscatability’ is unmatched”. Bitcoin is thus a sheer store of value.
There are even more encouraging ideas on this score. For instance, Changpeng Zhao, CEO of the biggest crypto exchange Binance, anchors big hopes upon Bitcoin as a gold counterpart, saying Bitcoin is even better, as it is easier to carry around. What a brilliant point!
The main doubt of many experts on the Bitcoin’s store-of-value property dwells on the disbelief in its long-term value. Gold’s value has been undeniable throughout the course of human history. With Bitcoin, there is still a feeling of uncertainty, as it only exists for roughly a decade.
Still, the experts’ perspectives are mostly positive, as Bitcoin is steadily gaining ground on a wider scale. This is vividly demonstrated by the fact that six major central banks of the world have pledged to collaborate on digital currency research. The banks of such big players as Canada, the United Kingdom, Japan, the European Union, Sweden and Switzerland have come together into the central bank digital currencies (CBDC) group, instituted within the Davos Economic Forum 2020. This looks like the most compelling evidence of the Bitcoin’s (and crypto in general) growing worldwide recognition and rising value. So hopes are strong that not far are the days when we will refer to gold as a “Bitcoin” of old times!
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