Brokerage firm Bernstein has predicted that bitcoin (BTC) will replace gold as the dominant store of value over the next decade. Analyst Gautam Chhugani noted that Bitcoin’s swift growth was driven by enthusiasm about potential U.S. policy changes under a possible Trump leadership.
Bitcoin Compared to Gold
Over the years, institutions and investors have predicted that Bitcoin will surpass gold as a dominant store of value. According to an industry leader, Brendan Blumer, CEO of Block.one., BTC could replace gold as a leading store of value by 2039, highlighting its long-term potential.
While certain experts highlight Bitcoin’s potential to compete with gold, others underscore its distinct attributes. Gil Luria of D.A. Davidson characterized Bitcoin as an asset with minimal correlation to inflation and strong appreciation potential, setting it apart from gold. He explained that Bitcoin’s value is primarily influenced by its growing adoption and integration rather than conventional economic indicators.
Meanwhile, BTC reached an impressive high of over $103,000 earlier today. However, the crypto market has experienced a slight pullback, and the asset is currently trading at over $99,200.
The $100,000 peak fueled confidence in both institutional and retail investors, who added profits to their portfolios as the crypto asset achieved a remarkable 41% annual increase.
Luria also noted that Bitcoin requires substantial progress before it can serve effectively as a widely used medium of exchange and a reliable unit of account. Adding to the parallels drawn between Bitcoin and gold, Federal Reserve Chair Jerome Powell offered his viewpoint during the New York Times DealBook Summit on Wednesday, where he referred to Bitcoin as “digital gold,” categorizing it as a speculative investment distinct from the U.S. dollar.
Altcoins and Stocks Ride the Wave
Bitcoin’s surge has boosted the prices of various crypto assets and related stocks. Ether (ETH) rose to $3,944 on Thursday, approaching its March peak of $4,090. However, it remains below its record high of $4,890, achieved in November 2021. The crypto asset was exchanging hands at over $3,800.
Meanwhile, Leading the charge among Bitcoin mining companies, Bitdeer (BTDR) surged by 17%, with Hut 8 (HUT) and CleanSpark (CLSK) both recording gains of approximately 10%. Riot Platforms (RIOT) climbed more than 8%, while Marathon Digital (MARA), Iris Energy (IREN), and Bit Digital (BTBT) saw increases ranging from 5% to 7%.
Leave a Reply