Golden Finance, citing Cointelegraph, reported that Brian Armstrong, the CEO of Coinbase, recently publicly expressed his firm optimism about the cryptocurrency Bitcoin, stating that Bitcoin is a better form of currency than gold. This statement has sparked widespread discussions in traditional finance and the cryptocurrency market, once again pushing the comparison between Bitcoin and gold, two highly representative value storage assets, to the center of public opinion.
Brian Armstrong believes that Bitcoin has many significant advantages over gold. From the perspective of the core attributes of currency, scarcity is an important criterion for measuring whether an asset is suitable to be used as currency. The scarcity of gold stems from its limited reserves and the difficulty of mining. The global gold reserves are limited and the mining speed is slow. The total amount of Bitcoin is set at 21 million through code. This mathematical algorithmic scarcity is more explicit and unalterable. No one can issue more Bitcoin, and its scarcity is more certain and predictable.
In terms of portability and divisibility, Bitcoin demonstrates advantages that traditional gold cannot match. Gold, as a physical asset, faces many inconveniences during storage and transportation. It not only requires professional storage facilities and high transportation costs, but also is difficult to conduct small-scale division transactions. Bitcoin, based on blockchain technology, exists in digital form and can easily achieve instant transfers worldwide. Regardless of the transaction amount, it can be quickly completed through the blockchain network, greatly improving transaction efficiency, reducing transaction costs, and meeting the demands of modern business activities for convenient payments and small transactions.
In addition, the decentralized nature of Bitcoin is also a key factor for it to be regarded as a better form of currency. Bitcoin transactions do not rely on any central institution. Users can directly conduct peer-to-peer transactions with each other, avoiding problems such as intermediary intervention and transaction review that may exist in the traditional financial system, and enhancing the autonomy and privacy of transactions. However, gold trading still largely relies on centralized institutions such as banks and gold traders. The trading process is relatively cumbersome and there are risks such as information asymmetry.
However, as an emerging digital asset, Bitcoin also faces many challenges and controversies. Its price fluctuates sharply, in sharp contrast to the relatively stable price trend of gold over the long term. Gold, as a traditional value storage asset that has been accumulated over thousands of years, has formed a stable value consensus and pricing mechanism in the global economic system, and can effectively play the role of a safe-haven asset during periods of economic turmoil. The price of Bitcoin is susceptible to various factors such as market sentiment, regulatory policies, and technical security, and may experience significant fluctuations in the short term. This makes it somewhat uncertain when Bitcoin is used as a store of value and a means of payment.
Meanwhile, the regulatory environment is also an important issue that Bitcoin is facing in its development. Regulatory attitudes towards cryptocurrencies such as Bitcoin vary among countries around the world. Some countries impose strict regulatory measures on cryptocurrencies and even prohibit related transactions, which to some extent restricts the wide application and development of Bitcoin. As a traditional asset, gold has a mature regulatory system and market rules, and has a clear position and regulation in the global trade and financial system.
The high praise of Bitcoin as a form of currency by Brian Armstrong, the CEO of Coinbase, reflects the optimistic expectations of the cryptocurrency field for the future development of Bitcoin. Although Bitcoin still faces many challenges in its competition with gold, with the continuous development of blockchain technology and the gradual deepening of market understanding, whether Bitcoin can surpass gold in the future and reshape the global monetary landscape is worth the market’s continuous attention and discussion.
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