Crypto Analyst Believes Bitcoin ‘Could Replace Gold’

· in Crypto News, Home
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

After long days with a Bitcoin price under $7,000 dollars, the famous virtual currency was able to recover and be sold for $7,400 dollars. And there are some cryptocurrency analysts that believe that the virtual currency can replace gold in the future.

Is Bitcoin Better than Gold?

In 2017, cryptocurrencies have registered important gains. Bitcoin moved from $1,000 to $20,000, which is quite impressive. That means that Bitcoin behaved better than the equity and gold markets. But is it possible for Bitcoin to replace gold? Bitcoin

According to Gabor Gurbacs, director of digital asset strategies at VanEck/MVIS, the market capitalization of Bitcoin could be two or three times bigger than now if it becomes a safe asset like gold. Gold has been a safe investment that provides gradual returns in long periods of time.

He thinks that if the cryptocurrency market becomes more mature, it may be possible for investors to hold a mixture of government bonds, gold, and Bitcoin in their portfolio. Investors may move away from the yellow market and enter the crypto world.

Mr. Gabor explained:

“Gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent, I’ll let everyone do the math about the upside of Bitcoin.”

At the moment of writing this article, Bitcoin has a market capitalization of $128 billion dollars. In December, the famous virtual currency reached a market capitalization of $300 billion dollars. But if just a small amount of the gold market enters the crypto space, the market capitalization of Bitcoin may grow exponentially.

Of course, the market has an important place to keep growing yet, and it will take some time for it to receive investment from those who are now in the gold market. In the near future, the U.S. Securities and Exchange Commission (SEC) may approve the first Bitcoin ETF in the market. This is one of the most important events this year in the space, aside from the development of the Lightning Network.

If the market gets more mature with regulations and receives more attention it can become an important place for investors to place their funds instead of gold.

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