Studies Show Bitcoin’s Value/Utility Chart Has Looked Quite Similar to Gold Up Until Now
Historically speaking, gold has served as one of the world’s most popular SOVs (store of value) for more than three thousand years now. However, many of our readers might be shocked to learn that despite the yellow precious metal possessing immense value for thousands of years, it wasn’t used as a physical coin-based currency up until the end of 6th century BC.
In this regard, when we draw parallels between BTC and gold, we can see that despite the flagship crypto asset having been around for nearly a decade, it is just now starting to garner the mainstream traction that many had envisioned it would. In addition to this, it should also be pointed out that over the course of the past 6-8 years, BTC along with other crypto assets such as ETH, EOS, XRP has also exploded in value — not solely because of their token scarcity, but because of their utility as well.
More On The Matter
As per a recent survey conducted by a respected media outlet, more and more people are beginning to view Bitcoin as a long-term store of value. This is because most investors believe that BTC will continue to grow financially as the years pass on — since the asset is useful for both practical purposes as well as other speculative reasons.
Not only that, since 2009, many studies have also shown that BTC has experienced massive growth in its utility value — thereby leading more casual investors to put their money into this burgeoning asset class.
Bitcoin today, monetarily speaking, is only a few steps ahead of where pieces of unrefined gold were when Neaderthals first discovered them in the ground.
But its monetization is going to happen >100x faster because we now live in a deeply interconnected & accelerating world.
— Murad Mahmudov 🚀 (@MustStopMurad) April 24, 2019
In closing out this piece, we should mention that quite unlike gold that took thousands of years to monetize, digital assets such as Bitcoin have been able to achieve a similar level of success within a period of less than 10 years— this is exemplified by the fact that there currently exist around 15,000 retailers across the planet who allow their customers to facilitate their payments using Bitcoin (and its various iterations such as BCH, BSV, etc).
Lastly, at press time, the total market capitalization of the crypto market stands around the $178 Billion mark — a figure that is several-fold higher than what it was just a couple of years back. In this regard, many experts believe that if the altcoin sector is able to maintain its steady growth for the next 5-10 years, it won't be long before this nascent asset class eclipses gold’s mammoth market cap of over $7 trillion soon.