It’s A Matter of Time before Bitcoin Eventually Replaces Gold – Investment Experts
It wasn’t a surprise seeing the rise of Bitcoin and the entire crypto industry create jitters across the traditional centralized institutions, especially Wall Street and mainstream governments.
Bitcoin's original Whitepaper, Satoshi Nakamoto, the mysterious brain behind Bitcoin didn’t shy away from abhorring them. This pseudonymous crypto diehard loathed the system so much that, the project’s first-ever block contained a headline drawn from the Financial Times regarding the Great Recession of 2008.
However, it seems Satoshi’s original idea is slowly getting blurred at the expense of some trader’s ‘get rich quick’ schemes and theatrics. See, the recent past has seen the fundamental value proposition of BTC get eroded as money-hungry individuals take over the industry. And now, the general opinion out there is that BTC isn’t an heir apparent of fiat currency anymore.
They generally see it as a speculation instrument which, if utilized well in risk-return purposes, one will quickly end up being an overnight millionaire. Another class includes those who perceive it as a form of digital gold.
But the digital world is in demand of a digital gold!
Gold is almost as old as the human race, given that it was accepted as a form of payment even before fiat came. It has been there for hundreds, perhaps thousands, of years. And still, from the look of things, gold will always retain its supreme role as a widely accepted mode of store of value for years.
It will most likely keep its status as a medium of beating inflation and the general wear and tear of perishables.
If gold is the best choice of storing value because it is tangible, then its intangible alternative could have been identified as well. Bitcoin, according to many which include Grayscale Investments agree that this cryptocurrency’s hedgemony will see it earn this noble status.
Grayscale Investment is a branch of a Digital Currency Group, a crypto behemoth. This investment group reported on why they think BTC is well on its way to being an excellent digital gold. They even Tweeted it!
It should be remembered that Grayscale Investments isn’t a mere team of nobodies looking to court publicity. Individuals who form this investment group have made headlines before, mainly when they talked about the block reduction reward. Interestingly, they were the first ones to throw shade at the use of gold, saying its usability had dwindled in recent times.
Regardless of their statement, however, Grayscale Investments were quick to say that gold remains the best tool for fighting inflation. They noted that gold, unlike a conventional fiat currency, is capable of retaining its value for more than three decades.
Bitcoin might even perform better, compared to gold
BTC, unlike gold, is already scarce in supply. It is decentralized too and, unlike gold which might be fake, the cryptocurrency is verifiable online.
Furthermore, one can safely carry BTC, divide it conveniently and still feel okay. These reasons are just adequate to replace gold with Bitcoin.
But, can you imagine how a world where Bitcoin is more revered than gold would look like
Assuming that the world finally embraces this idea and, people en-masse, ditch gold for BTC, how would the world look like? Well, this is food for thought.
HodlWhale, a crypto investor from Seattle, thinks that if this were to happen, the value of a single Bitcoin would shoot to $350,000. Expressing his thoughts via a Tweet, @HodlWhale believes that BTC might eventually disrupt the tech and financial sectors.
$350,000 for BTC might appear awkward, but it isn’t. In fact, according to NewsBTC, the total value of all gold in the world right now is about $7.83 trillion. Bitcoins are valued at $94 billion, which simply means if BTC were to replace gold fully, then one Bitcoin will be worth $450,000.