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Saying that Bitcoin will displace gold as the world’s most valuable asset sounds like blasphemy to the ears of traditional investors. However, as time goes by, this statement progressively leaves the field of rhetoric and moves to that of possibilities. The latter becomes more important when the argument is supported by large TradFi financial firms.
In a note to investors, Bernstein analyst Gautam Chhugani reaffirmed his stance on Bitcoin’s superiority. Quoted by the CNBC portal, the expert considers that the characteristics of the Cryptocurrency make it the perfect candidate to be housed in the portfolios of large companies.
“We hope that Bitcoin emerges as the main store of value asset of the new era,” says the analyst. He adds that the latter implies that the cryptocurrency will eventually “replace gold over the next decade.” It is important to note that the market capitalization of BTC represents a small part of the capitalization of gold. However, the reduction in distances is accelerated.
For Chhugani, there is no doubt that Bitcoin will displace gold from its ancient position. Bitcoin will prevail, “becoming a permanent part of institutional multi-asset allocation and a standard for corporate treasury management,” he says.
In the digital age, gold is no match for Bitcoin
The financial world is moving rapidly towards total digitalization. In that context, digital assets are natural to the new environment, which means older assets will have trouble fitting in. The only reason gold is favored today is due to the fact that cryptocurrencies are very new assets.
As time goes on, Bitcoin will continue to demonstrate that it has tremendous ability to better serve as a store of value. The latter is what pioneer cryptocurrency enthusiasts assume.
A few hours ago, the price of BTC reached the historical goal of $100,000 per coin. This is one of the great milestones that would mark the passage of the digital currency towards a stage of greater maturity. As the price of the token approached this point, the number of traditional companies that began investing in it was significant.
According to Chhugani, this is just one of the first rises in Bitcoin on its way to displacing gold. It states that by the end of 2025, the price of the currency could conquer the barrier of $200,000 per unit.
The belief that BTC will reach $200K by the end of 2025 is not unique to Bernstein. Likewise, Standard Chartered analysts also suggest that possibility.
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