Lately, one thing has come to my attention, something which I just couldn't resist writing about. Our favorite digital gold, Bitcoin, is coming closer to and embracing its glittery partner in the real world. This carries some interesting implications.
Now, I'm not technical at all, but this is huge news. It's as if these two assets have finally started dancing to the same beat after being out of sync for so many months.
Why does that matter?
For one, it gives Bitcoin some real street credibility. We've all heard the "digital gold" speech, but now it appears that this is playing out in real time; Bitcoin is living up to its promise as a hedge against economic uncertainty.
That said, real gold is out there getting the job done, whereas Bitcoin's just cozying up to gold, and Ethereum's correlation is nil. It's kind of like watching two brothers grow up and go in completely different directions in life.
The thing is, I have never really bought into this whole "ultra-sound money" Ethereum narrative. Not that I don't like what Ethereum brings to the table in terms of smart contracts and DeFi, but as a store of value? Come on. This latest data just confirms my suspicion.
Let me be rather candid here: Ethereum is like that kid in school who keeps trying out different things, exciting, innovative, and not quite stable, while Bitcoin is turning out to be somewhat like that older sibling who seems to finally have their life pieced together.
Look at it today: far from perfect, but it's maturing. And this correlation with gold? Bitcoin is growing up, getting its first real job, and proving all the haters wrong.
We shouldn't turn a blind eye to the fact that Bitcoin is still way behind gold this year. But let's put it into perspective: Bitcoin has had quite a few 'crashes', not to mention regulations beyond one's imagination.
It's incredible to me the way it's now coming back, running side by side with gold.
I am also not saying that Bitcoin is going to surpass gold anytime soon, that's a different argument for a different day. Rather, what I mean is that perceptions, and indeed behavior, are beginning to shift regarding Bitcoin in the market. This investment is no longer the Wild West, but rather forging an important niche for itself as a tested asset.
On Ethereum, though: seriously, I think it's finally time to stop trying to fit Ethereum's square peg into Bitcoin's round hole. Ethereum's just a different beast and its value will come from its ecosystem: the projects on DeFi, the NFTs, the whole shebang.
Comparing Ethereum to gold is like comparing apples to computers.
It means the crypto market is finally growing, finally maturing. Bitcoin secures its place within the greater financial world, while Ethereum keeps innovating and pushing the frontiers of what the blockchain space is all about.
