It has been stressed too many times that Bitcoin is the digital gold, but there was never a poll or anything subtle built around it to test this hypothesis. But that doesn’t remain a thing of the past as an analyst from Deutsche bank took it upon themselves to construct a poll regarding this very question. The results were pretty captivating as many institutional investors have rooted for Bitcoin to become the digital gold of the 21st century.
Bitcoin has already reached $1 trillion of feasible market valuation, and this impeccable growth has made it pretty hard for banks and other financial institutions to continue to dismiss its validity. According to Marion Laboure, Bitcoin is definitely growing faster, and its reputation is growing even at a larger pace. During times of inflation or general market collapse, people have always tended their attention towards gold or silver because gold is the standard of wealth was always considered a hedge against inflation.
Another reason, according to Marion, is because gold is not controlled by the government, so its price is really not bamboozled when the times of panic hit. The new research suggests that Bitcoin has all these specific attributes, such as gold which is why it could replace gold and become digital gold itself. But wouldn’t it be hard to do completely replace gold?
Bitcoin May Not Replace Gold
Gold has played its role through centuries, being a hedge against inflation and uncertain economic times. All of this is just a suggestion and not a real-life implementation of a concept. Bitcoin is very far from becoming digital gold or replacing all reserves of physical gold. It is just an assumption that someday Bitcoin could achieve that. Even now, Bitcoin is nowhere near dominating physical gold. There’s another assumption that Bitcoin might never be able to catch up to gold or replace it, for that matter, but cryptocurrencies do have their significance and importance in the modern finance world. This could shape the future of financial institutions and payment processing platforms for good because of all the security and efficiency decentralization brings to the table.