Bitcoin has been regaining its strength lately, as it finally has surpassed $7,000 in price. One expert in cryptocurrency has noted that this upside is major for the platform, and will hopefully urge gold investors to take advantage of Bitcoin, due to its reputation as “digital gold”
The director of digital asset strategies at VanEck/MVIS, Gabor Gurbacs, recently participated in the “Futures Now” segment at CNBC. He said,
“Gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — bitcoin has upside.”
Right now, the market cap for Bitcoin is approximately $128 billion, after having grown about 16% in the last week, making the current price $7,423.43. However, by increasing by 10% of the current value, the total market cap would be triple the gold standard.
To further explain, Gurbacs said,
“Bitcoin is used as digital gold today. It’s a de-risk asset. Basically, if someone wants to outlay systematic risk, then one would go to access gold or digital gold.”
In order for this change to take place, Bitcoin needs to mature more, giving it stability in the market to bring in other institutional investors. Many enthusiasts, including Gurbacs, believe that this step is a natural and inevitable part of the path.
“We believe that there is sufficient liquidity. We believe there is pricing benchmarks. We believe there is a way to integrate bitcoin into the financial ecosystem that we are used to for ETFs, stocks, bonds and commodities.”
Unsurprisingly, fewer people are turning to gold to maintain their wealth as the market changes and are gravitating towards the use of Bitcoin and other cryptocurrencies instead. Clem Chambers, who wrote a book called Be Rich, The Game in Wall Street and Trading Cryptocurrencies: A Beginner’s Guide, explained in May how gold and Bitcoin differ in their wealth security.
“A normal person sweating a war isn’t a billionaire with a private office, but in the old days they might have stashed a few thousand or even hundreds of thousands in gold if they thought the balloon was going up. Today you’d stash it in Bitcoin and be safe in the knowledge that you could fly away on holiday somewhere safe for a few months and your stash would be as safe as the place your hid your private keys.”
Earlier in 2018, even the World Gold Council said that they agree that Bitcoin could overtake physical gold.
They said that Bitcoin alone could,
“undermine the tools used by the Fed and other central banks to influence the economy.”