Image source: pixabay - timcgundert
Following yesterday's post on: Billionaires Gives Penny Worth of Thoughts on Bitcoin, the comparison of digital gold to physical gold has sparked off some discussion on CNBC's Futures Now.
With digital currencies, store of value is much more convenient that gives access of all of your digital assets no matter where you are in the world. Imagine only 10 percent of the world is actively using cryptocurrencies, to reach half of the world's population would already see prices going up by 5 times. That would translate to about $30,000 per Bitcoin.
Source: steemit - tysler
In a logical move to diversify investment assets, we could see investors putting a chunk of their money into Bitcoin. Gold investors could be making small shifts into Bitcoin and other cryptocurrencies as a store of value.
Gabor Gurbacs, Director of digital asset strategies at VanEck/MVIS, explained on CNBC's Futures Now:
"... a maturing crypto market that could lure investors out of physical gold and into “digital gold". Gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — bitcoin has upside."
Source: CNBC - Keris Lahiff
Image source: pixabay - geralt
A shift of 10 percent of the gold trade into Bitcoin, would triple the current market cap of $128 billion. For many years, gold investors face issues storing their gold in vaults for safe-keeping. They are hardly able to use gold for actual trade and the risk it carries when transporting them across country borders. Although Bitcoin may not be as shiny as gold bars, blockchain security together private and public keys, are definitely a more convenient way to make payments.
Previously when Gold ETFs were implemented, gold prices surged 300%. At a modest 273% surge after the arrival of BItcoin ETFs could send prices up to $60,000.
The market capitalization of gold – with all the gold that has been mined – is about $8.7 Trillion. However, if Bitcoin attains a $60,000 price mark, then, its market capitalization will be about $1.26 Trillion with a circulating supply of 21 million.
Source: globalcoinreport - ibankcrypto
Noah Smith, an assistant professor of finance at Stony Brook University, also supports the Bitcoin-Gold movement:
Like gold, Bitcoin is a finite resource. Only 21 million Bitcoin will ever be produced, so it’s a deflationary asset that benefits from relative scarcity. Moreover, Bitcoin is an asset with a high expected return, and these assets tend to be more volatile.
Source: cryptoslate - Bill DeLisle
Image sourece: pixabay - WorldSpectrum
