No matter how sophisticated the monetary and financial system of any country is, it is still considered a wise and prudent decision to have assets whose values are not based on fiat currency. It is based on this reason that assets like precious stones and rare items are still viewed in high regard by people looking to safeguard their wealth.
Take gold, for example, the precious stone is not tied to any economy in the world and as such, its value cannot be affected by the devaluation of the dollar or any other powerful world currency.
In decades past, countries even had their currencies backed up by gold but that model has been abandoned in favor of the prevailing fiat model that is seen today.
Within the context of the cryptocurrency revolution, bitcoin has been identified as being a worthy replacement for gold as far as having a money-saving asset is concerned. According to a number of experts and commentators on the issue, bitcoin is indeed “gold 2.0”, or at the very least, “digital gold.”
According to Stepan Gershuni, a partner at New Mining Company, bitcoin has a bright future. This is based on the fact that bitcoin is the safest and most popular cryptocurrency currently in existence.
Gershuni believes that bitcoin will have no trouble in replacing as the de facto money-saving asset. He based this assertion on the advantages that bitcoin has over gold which include divisibility, better security, and ease of transfer.
He declared bitcoin to be a safe harbor that will provide security for holders in the event of an economic downfall or the devaluation of a national currency.
Echoing the sentiments expressed by Gershuni, Artem Koltsov, the head of the council on digital economy and blockchain technology in the Russian Duma is confident of the bright future in store for bitcoin.
He asserted that despite the controversy and general lack of confidence in the cryptocurrency financial model, blockchain technology and cryptocurrencies will play a vital role in the economic landscape of the future. He went on further to say that bitcoin and other cryptocurrencies will be widely used in the future.
Speaking specifically with respect to the blockchain, he expressed his belief that governments around will find extensive applications for the technology.
While all of this is going on, Koltsov expects the efficient transactional framework that cryptocurrencies provide will materially diminish the cost of international economic transactions making global commerce to become more profitable.
While the current bitcoin climate is still one filled with a great deal of uncertainty, Koltsov believes that bitcoin should not be underestimated. On the subject of bitcoin becoming the new gold, he said that he expects bitcoin to become a capital savings asset in the near future in much the same way as gold is used today.
The meteoric rise in the price of bitcoin in 2017 caused widespread fears of a bubble emerging. Reports of stricter regulations from a number of countries caused massive sell-offs and the price of bitcoin dipped considerably but has been able to maintain a fairly stable level in the month of March 2018.