For quite a long time, Bitcoin (BTC) has been considered as the logical successor to gold, in fact, it is called “ digital gold ”. If many traditional investors, including Peter Schiff’s Golden Beetle, reject this comparison, the Delphi Digital analyst revealed that this correlation is only increasing.
In a Twitter post, a research company claims that Bitcoin continues to strengthen itself as a digital value repository.
Digital Gold Narrative Strengthens
? "Alts" take hit but #bitcoin holding up * relatively * well
RentCurrent macro backdrop strengthens bullish narrative for $ BTC as LT option on digital gold
?Recession risk⬆️— market says Fed rate cuts all but guaranteed https://t.co/QTCXAcOwGg pic.twitter.com/gIZ3x7hBvK– Kevin Kelly, CFA (@Kevin_Kelly_II) July 23, 2019
Analysts explain that in recent months, Altcoins have been inferior to market leaders, since Bitcoin has remained quite strong even in difficult times against the background of growing macroeconomic and geopolitical problems. This suggests that Bitcoin is a “long-term option for digital gold.”
In addition, CoinMetrics recently discovered that the number of bitcoins that have not moved for three years or more has increased since the beginning of 2017 and throughout 2018.
In fact, the number of coins that did not move for at least one year rose to ten million, a record high. This means that more than half of the bitcoins currently mined and a little less than half of all BTC emissions remain intact for more than 12 months.
According to the well-known podcast creator Matt Odell, who is a supporter of bitcoin, this is a sign that bitcoin is capable of becoming a repository of value, and this is a key characteristic of gold, not digital media.
Last week, Facebook’s former head, Chamat Palihapithia, told CNBC that Bitcoin is the ideal hedge against the traditional financial infrastructure.
Central banks around the world seek to reduce interest rates and apply inflationary policies, in essence giving thus a chance for Bitcoin to prove itself. Anthony Pompiano, believes that such a policy is a “rocket fuel” for BTC.
Publication date 07/29/2019
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