According to CoinDesk: Matrixport, a crypto services provider, in its report published on Monday, highlighted that Bitcoin (BTC) significantly outpaces gold as a store of value. The report points out that the ongoing rise in demand for Bitcoin as a digital refuge is chiefly responsible for its burgeoning popularity.
Currently, Bitcoin's market capitalization stands at $540 billion, which corresponds to 10.8% of the physical financial gold's market cap, as per Matrixport. They also point out that the current valuation of gold exchange-traded funds (ETFs) is $200 billion. Should the US Securities and Exchange Commission (SEC) approve a US-listed spot Bitcoin ETF, it could lead to a surge of $20 - $30 billion in inflows. This action could, in turn, stimulate a significant rally in the cryptocurrency, the report stated.
The report also indicated that Bitcoin has an advantage over gold as its private keys can be remembered, thereby reducing the risk of confiscation. "Storing assets in the form of gold has not only become unfashionable in the digital age, but comes with significant restrictions when crossing borders," said Markus Thielen, head of research at Matrixport. He further emphasized that Bitcoin resolves this issue, facilitating quick and relatively discreet transfers of value across frontiers.
Thus, considering the current stage of technological progress, the report concluded that Bitcoin's primary functions are most likely as a store of value akin to gold and a speculative financial asset.
