Bitcoin: Digital Gold and Safe Haven


Cathie Wood, head of ARC Invest said she considers Bitcoin as "safe haven" for investors and compared it to digital gold.


This is a very accurate view of Bitcoin and the future of the cryptosystem.


Today, hundreds of different cryptocurrencies and tokens are in circulation. The vast majority of them have no real prospect and are held solely by advertising and speculation. In the medium term, they will disappear, but most likely they will be replaced by new "overnights".




As for Bitcoin, I am sure that we will live in a world where it is of real value. We just have to figure out what niche it’s gonna take.


Today we see the unfolding economic crisis very clearly. Let’s call it more precisely: this is the crisis of the fiat economy. We won’t talk about its causes, just look at the consequences.


With a high probability that the coming crisis will lead to a change of financial system, fiat can be replaced by cryptocurrencies. What place will Bitcoin take? Will it be a payment tool? This is unlikely. Bitcoin is good for individual purchases, but it is not very suitable for everyday retail settlements. These are both emission limitations and rather slow transactions. It is, rather, ideologically designed for constant cost growth. In its functionality, Bitcoin is similar to objects of investment, that is, what Cathie Wood called "digital gold".


A fiat crisis may also lead to the depreciation of traditional assets. Securities, various goods, and real estate can lose liquidity. The only exception is gold, a universal asset symbolizing value.

However, Bitcoin stands aside from the fiat economy, and, given the shortage of assets suitable for investment, it will retain liquidity and may become a "safe haven".


So, this is "digital gold" and "safe heaven". Who would have guessed a decade ago that leading financial analysts will seriously apply these epithets to Bitcoin? We live in amazing times.


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