A recent Bloomberg article has ignited a debate about Bitcoin with a striking comparison to gold. Eric Balchunas, a Senior ETF Analyst, emphasized that Bitcoin is like gold but as a teenager, implying the contrasts between the two assets.
Gold, a timeless store of value, has proved itself stable over centuries. In contrast, Bitcoin is a relative newcomer to the financial world; it popped up only in 2009 and experienced its lowest price of $0.05 on July 18, 2010. It is less stable than gold being tied to the weakening, or sometimes growing asset nature fluctuation. Moreover, the development and ability of Bitcoin are hard to rebut.
This metaphor was then extended to describe Bitcoin as a “son of gold” – a teenager who is on the path to independence. As opposed to gold which is supported by governments, Bitcoin is driven by transparency, safety, and decentralization. The trail it took has had an enormous amount of hurdles and successes, a lot like a teenager who learns to avoid old mistakes.
This comparison of Bitcoin to a teenager speaks to many. By doing so, it illustrated the volatile and evolutionary aspect of cryptocurrency.
Although bitcoin has taken the hard path to success, the asset has been doing great following its trading price, the asset has been on bullish momentum. $64,068.23.
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