In a recent discussion on X, Alex Thorn, head of research at Galaxy Digital, addressed the criticisms surrounding Bitcoin's status as 'digital gold.' The publication provides the following information: his insights aim to clarify misconceptions about Bitcoin's role in the financial landscape.
Bitcoin's Monetary Properties vs. Market Performance
Thorn argued that the label of 'digital gold' has always been tied to Bitcoin's monetary properties rather than its performance in every macroeconomic scenario. He acknowledged that Bitcoin's inability to mirror gold's trading patterns since September 25 has led to disappointment among new investors, but he framed this as a misunderstanding of Bitcoin's true nature.
Unique Characteristics of Bitcoin
Highlighting a thought experiment from Bitcoin's creator, Satoshi Nakamoto, Thorn pointed out Bitcoin's unique characteristics, such as its scarcity and global portability. He emphasized that the discussions around Bitcoin as digital gold focus on its fundamental properties rather than short-term market fluctuations.
The Future of Bitcoin as Digital Gold
Thorn concluded by asserting that the investment thesis for Bitcoin remains strong, with the potential for it to be valued similarly to a monetary metal in the future despite the current market challenges.
Recently, Bitcoin's value appreciation against gold has stalled, raising concerns about its future amid quantum computing risks. For more details, see the full article here.
