Bitcoin Being Digital Gold and Ethereum Being Digital Silver

gold for bitcoin

Marion Laboure who is a Researcher at Deutsche Bank Research stated in the latest research study that Btc has the capacity of becoming 21st-century gold. Labor also emphasized the increasing use of Ethereum, the world’s largest highest valued digital asset, in decentralized finance (Defi) and non-fungible coins (NFTs).

Marion Laboure stated that if Bitcoin is referred to as “Digital Gold,” Ethereum is referred to as “Digital Silver.” According to a Deutsche Bank analyst, neither cryptocurrency is expected to outperform Bitcoin or Ethereum. Aside from the growing popularity and huge trend of digital assets, Laboure also noted some of the drawbacks of BTC and ETH.

Cryptocurrency VS Actual Money

Some of the major disadvantages of Bitcoin, Ethereum, as well as other cryptocurrencies assets, according to Laboure, include a lack of regulation, excessive energy consumption, and severe instability. According to Laboure, the usage of real money as a payment method will decrease in the coming years. In the recent report, he also said that Individuals always have valued assets that are not under the authority of governments.

For millennia, gold has served in this capacity. And, sure, we can see Bitcoin being the virtual gold of the twenty-first century. On top of that, the important thing is that gold has traditionally been volatile. However, it is crucial to remember that Bitcoin is dangerous: it is now too unstable to be a dependable store of wealth. And almost everyone expects it to be quite volatile in the near future.

In a contrast between BTC and typical real currencies, Laboure stated that Bitcoin’s restricted supply provides it a unique protective mechanism against fiat currency inflation. According to him, Bitcoin’s circulation is fixed. The total amount of BTC that would ever exist is a little less than 21 million. And around 89 percent of the Currency’s entire quantity is now in use. In a lot of fiat currencies, central banks regulate the quantity and have considerably increased it in recent times. El Salvador has become the globe’s first country to formally adopt Bitcoin as legal money earlier in the month.

Bitcoin is widely regarded as one of the most flexible, portable, and long-lasting stores of money ever devised. The advantages of Bitcoin versus the actual money are depicted in the graphic below, as well as how it is undergoing transformation to be the future of money.

The major selling point of BTC is that it is decentralized: anybody in the world via the internet connection will be able to use the network and ensure that their money and operations are being safeguarded by the world’s biggest computer server.

Bitcoin’s tremendous advantages are beginning to be recognized. Bitcoin is becoming more and more popular each day. Square Payments is one of the top three firms with cryptocurrency on their balance sheet, and Paypal just opened up Bitcoin to 330 million clients. With well-known brands embracing Bitcoin, investments are really only anticipated to rise, especially as central banks print the money. So it is no longer a surprise that soon BTC might become digital Gold as well as Ethereum Digital Silver.