2019-1-31 04:12 |
There is currently an ongoing conversation as to the status of Bitcoin (BTC). Since it may no longer be on track to its value proposition as a form of digital cash, investors seem to be in a bit of an unsure state as to the future. Even though some still maintain that it is an amazing digital Store of Value (SoV), others think otherwise.
Is Bitcoin The New Gold?The World Gold Council, a pro-gold market organization in the United Kingdom, has said that Bitcoin is nowhere near the destination some proponents hope it will get to. The Council says that BTC is not and may never be a digital store of value. They went ahead to support this claim by stacking and comparing the market performances of Bitcoin, gold, and NASDAQ. They expressed that in recent times, the global “stock markets experienced their worst quarter since 2009,” in Q4 of last year.
This was supposed to be an avenue for Bitcoin to prove its stability when everything else became unstable. However, it fell way below even the stock markets. This makes it difficult for them to be optimistic about how well BTC can do in the future.
The firm even went ahead to ask investors and potential investors to re-examine the indices that informed their choice to invest in BTC and other cryptocurrencies. The council has completely dismissed the claim that BTC is the new digital gold.
Also, reports have it that many Bitcoin investors may be abandoning Bitcoin to invest in gold.
A recent poll conducted on Twitter by Van Eck’s Gabor Gurbacs shows that many investors seem to think gold is a more profitable investment and a much better way to invest their money. Van Eck has also decided that his firm, CBOE, and SOlidX, would also discontinue their Bitcoin fund application.
He said,
“Interestingly, we just polled 4,000 crypto investors and their number one investment for 2019 is actually gold. So gold lost to bitcoin and now it’s going the other way.”
The OptimismFounders of the Gemini Exchange – the Winklevoss Twins – have said that their outlook on BTC and its future still remain as is. Tyler, one of the twins, expressed that the twins’
“thesis [on] Bitcoin’s upside remain unchanged,”
even considering the bear market that destabilized the crypto market in 2018. They, along with many cryptocurrency investors, still believe that Bitcoin is
“better at being gold than gold itself”
Other OptimistsApart from the Winklevoss Twins, Dan Held – a former product manager at Blockchain.com has also expressed that he believes that in the beginning, Satoshi Nakamoto himself, created Bitcoin with the belief that it would eventually become digital gold. He explained that Nakamoto’s consistent use of the terms – gold and long-term growth – supports this.
Held concluded that
“what he (Satoshi) was trying to accomplish was clear, he wanted to build a new backbone for the financial system. Bitcoin isn’t merely digital cash, but an alternative to banks.”
Only time will really tell the future of BTC.
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