íàçâàíèå

Bitcoin Displacing Gold Entirely Would Value BTC At $350,000: Is It Possible?

Since its birth, Bitcoin (BTC) has been lauded as an alternative to traditional assets day in and day out. Most notably, the cryptocurrency is. in the eyes of some pundits, a replacement to gold, specifically the metal’s store of value capabilities. But if Bitcoin takes over gold’s hegemony, what would happen to the value of BTC?


Related Reading: Bitcoin (BTC) Best Performing Major Asset in 2019, Surges 43% Year-to-Date

The Case For A Six-Figure Bitcoin

According to HodlWhale, a Seattle-based cryptocurrency investor, a world where Bitcoin has absorbed all the value of the gold in circulation would see BTC valued at $350,000.

This figure isn’t exactly baseless. As reported by NewsBTC on an earlier date, all gold in circulation is currently valued at approximately $7.83 trillion, while all BTC has a mere $94 billion valuation. If the latter was to fully displace the value of the first, Crypto Voices, an industry analytics and research group, estimated that BTC would swell to a value of $450,000 slightly above HodlWhale’s estimate.

And while this sounds absurd, especially considering that cryptocurrencies remain in the depths of a brutal bear market, some are sure that Bitcoin will become the “digital gold” that its investors want it to be.

Could BTC Displace Gold?

Mere days ago, Adamant Capital, a Bitcoin-centric fund led by long-time investor Tuur Demeester, released a report on the crypto market’s current status. Following an explanation that “whales” are accumulating cryptocurrencies en-masse, the market is expressing “hope,” and that a further drawdown could be possible if conditions are right, Adamant’s partners explained that they expect for Bitcoin to disrupt traditional assets, like stores of value and reserve assets.

The firm specifically looks to the growth of Bitcoin scaling, like the Lightning Network’s staggering growth and the rise of sidechains; the institutionalization/financialization of this industry through Bakkt, Nasdaq’s futures, etc., and the rise of the millennial demographic to claim that BTC could become a “globally used digital gold and reserve asset.” But why exactly should BTC usurp gold?

Well, it’s simple, to be frank.

As Gemini’s Tyler Winklevoss explained, Bitcoin is better at being gold than gold itself a sentiment held by many long-standing cryptocurrency investors. He specifically looks to the fact that BTC is portable, sculpted for today’s digital society, even scarcer than the metal, censorship-resistant unlike traditional assets, and decentralized as a way to back this cheery sentiment. At one point, the cryptocurrency entrepreneur added that the only thing that gold has over BTC is a “3,000-year headstart.”


Featured Image from Shutterstock

The post Bitcoin Displacing Gold Entirely Would Value BTC At $350,000: Is It Possible? appeared first on NewsBTC.

20.04.2019 / 14:30 70
Here’s How Much Bitcoin Countries Need to Replace Their Gold Reserves Here’s How Much Bitcoin Countries Need
New research from a digital asset management firm estimates the amount of BTC governments have to accumulate if Bitcoin were to replace the current
Van Eck Associates CEO: Bitcoin Investors Will Add Gold This Year Van Eck Associates CEO: Bitcoin
Gold and bitcoin markets have have attracted comparisons for some time now, with gold investors taking an interest in the cryptocurrency during the
Gold Demand Rising: Investors Turn to Precious Metal as Safe Haven Asset Gold Demand Rising: Investors Turn to
Recent global economic concerns and stock market volatility seem to have increased demand for gold as a safe haven asset. The price of the precious
Morningstar Analyst: Bitcoin and Other Digital Assets will Never Replace Gold Morningstar Analyst: Bitcoin and Other
Analysts from investments ratings firm Morningstar have stated that Bitcoin and other cryptocurrencies will never be a threat to gold as a store of
‘Uncanny’: Historic Gold & Bitcoin Price Charts Almost Identical ‘Uncanny’: Historic Gold & Bitcoin
Many have compared Bitcoin to gold with some even referring to the former as digital gold. As it turns out, the historical performance of both assets
Investor Says Bitcoin is the ‘First Viable Replacement For Gold’ Investor Says Bitcoin is the ‘First
Speaking at the Sohn Investment Conference on Monday, April 23rd, John Pfeffer, serial entrepreneur, investor, and currently a partner at Pfeffer
Comments (0)
Add a comment
Comment on