Bitcoin is widely considered as material wealth in the form of gold in the modern finance structure. Most niche consumers in the space come in and intend to hold onto their investment in BTC or other cryptos, and reap out whenever the market provides a good return. In the past, this store of value as investment has been provided by material assets, most well by gold. Over many years, people have been investing in gold and holding on to it as storage of value. Now, Bitcoin is thought to be the new form of storing value for both present and the future.
Sharing the very opinion was finance expert Marc Weinstein, who is Principal at Wave Financial that is a leading consultant to top-tier crypto projects. He talked about the survival of Bitcoin as:
Bitcoin has survived for 10 years now. The longer it survives, the more likely it is to continue to survive. I believe that Bitcoin will, at the very least, prove the Store of Value (digital gold) thesis over time and
replace a meaningful percentage of the gold market capitalization.
Although there is still much to be acquired by BTC if it is to truly start being considered as a model store of value. Foremost, the price returns it is able to provide in the market yet are not well substantiated and are subject to great amounts of volatility. So how much does Bitcoin need to do in order to increase returns and replace gold? Marc answered:
If it were to replace 30% of the gold market cap, that would equate to $2.1 Trillion in value. When you compare this to the current market cap, it
equates to around a 20x return.
Also in peak requirement would come its global image that has taken a rather negative outset owing to criminal and laundering activities becoming pertinent to the Bitcoin profile. This can be well aided by regulatory authorities coming forward and making drastic decisions regarding its moniterization.
Find an alternative opinion to why BTC cannot become equivalent as storage of value to gold here.