In a report released on Monday, the cryptocurrency services company Matrixport showed how Bitcoin (BTC) vastly outperforms gold as a store of value. The paper makes the point that Bitcoin’s rising popularity is primarily due to the demand for it as a digital haven.
According to Matrixport, the market capitalization of Bitcoin is currently $540 billion, or 10.8% of the market value of actual financial gold. They also mention the $200 billion market value of gold exchange-traded funds (ETFs) at the moment. A $20 to $30 billion increase in inflows is possible if the US Securities and Exchange Commission (SEC) approves a US-listed spot Bitcoin ETF. A big increase in the price of the cryptocurrency could result from this step, the article said.
According to the paper, Bitcoin has a benefit over gold in that its private keys may be remembered, lowering the possibility of seizure. According to Markus Thielen, head of research at Matrixport, “Storing assets in the form of gold has not only lost favour in the digital age but also comes with significant restrictions when crossing borders.” He added that Bitcoin overcomes this problem by enabling rapid and reasonably covert value transfers across borders.
Therefore, taking into account the current state of technological development, the paper came to the conclusion that Bitcoin‘s main uses are probably as a speculative financial asset and a store of value similar to gold.