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Unlike gold, Bitcoin shows low correlation with inflation.
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There would still be a long way to go before bitcoin became a means of payment and a mass unit of account.
Bernstein, an investment management firm, stated that bitcoin could replace gold as the main store of value asset in the next ten years.
Gautam Chhugani, company analyst, pointed out that bitcoin will become the main “store of value asset of the new era”.
The specialist maintains that the currency “will become a permanent part of institutional multi-asset allocation and a standard for corporate treasury management.”
Bitcoin It has been compared to gold due to its consideration as a reserve of value and alternative to fiat currencies.especially in times of economic uncertainty. This similarity has led to the currency being known as “digital gold.”
This is due to the nature of BTC as an appreciating asset with low correlation with inflation, unlike gold, the firm explains.
The position of Bernstein, which has assets under management valued at 725 billion dollars, was expressed after a historic milestone of bitcoin. For the first time, the digital currency exceeded $100,000marking an advance of 133% so far this year, as seen in the following graph of TradingView.
BTC price. Source: TradingView.
The price went from $42,000 at the beginning of the year to more than $100,000. In any case, the firm anticipates that the price could reach $200,000according to a projection made in November.
Much of the recent increase in the price of bitcoin is attributed to the presidential elections in the United Stateswhere Donald Trump was elected president, as reported by CriptoNoticias.
Trump, who will take office on January 20, has promised a more flexible policy towards cryptocurrencies and plans to establish a strategic bitcoin reserve. In addition, he has appointed members of his cabinet with a pro-bitcoin profile, including David Sacksformer chief operating officer of PayPal, as the “crypto czar” of his administration.
Despite these projections, Bernstein also recognizes that bitcoin still has a long way to go to become a means of payment and a generalized unit of account.
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