Attention Economy


Monday, January 24, 2022

Is Bitcoin Really Digital Gold?

The Case for ‘Digital Gold’ Unravels as Bitcoin’s Plunge Deepens
https://www.bloomberg.com/news/articles/2022-01-21/the-case-for-digital-gold-unravels-as-bitcoin-s-plunge-deepens
Bitcoin Price Falls Below $35,000 in Tandem with Stock Selloff
https://www.wsj.com/articles/bitcoin-price-falls-below-40-000-in-tandem-with-tech-selloff-11642765835
 
I wrote the following in May 2021:
https://thehill.com/opinion/finance/554998-is-bitcoin-the-future-of-money
If not the future of money, can we make a case for Bitcoin as digital gold? Proponents argue that since Bitcoin, by design, is limited to a maximum of 21 million units, it can act as a stable store of value. Given its short history and its intangible nature, it is unclear that Bitcoin offers a true alternative to traditional gold. Gold has a long history as a medium of exchange, and the yellow metal has impressive physical properties that have caused humans to value it highly for thousands of years. Even today, many societies widely use gold for jewelry and ceremonial purposes. Additionally, from a financial standpoint, Bitcoin is currently too correlated with risky assets to act as an effective inflation hedge”.