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IT4nextgen > News > Will Bitcoin Become The New Standard This Year

Will Bitcoin Become The New Standard This Year

Last Updated January 15, 2025 By Subhash D Leave a Comment

You’ve most likely heard the phrase “gold standard” at some point in your life. The recent spectacular ascent of Bitcoin has seen the cryptocurrency reach new highs and surpass the $1 trillion market capitalization barrier earlier this year. It has sparked renewed interest in the long-running dispute between cryptocurrency and gold well-known asset class. Because of both Bitcoin and gold’s advantage against fiat currency inflation, they consider simple methods to diversify a portfolio of assets.

Until recently, the two assets were seldom compared, with few institutional investors, Wall Street analysts, or corporate leaders taking the time to do so carefully. Bitcoin is referred to as “digital gold,” and it is an excellent investment for anyone seeking to make money in the short term when it comes to gold. Questions about two purchases have risen again in recent weeks, owing to the current fast increase in the price of Bitcoin, which has been attributed to recent interest in the cryptocurrency by Tesla and other institutional names, as well as other factors. So, the issue is, will Bitcoin soon overtake gold as the new gold standard?

The Slow Demise of the Gold

For many decades, gold has been considered the formal basis for the world’s financial institutions. Until the outbreak of World War II, most nations tied their currencies to a particular amount of gold. However, during World War II, in 1944, this notion suffered a devastating blow. On the other hand, the US dollar remained stable about gold, with one ounce of gold trading for $US35. However, following the Vietnam War, inflation took hold in the United States, prompting the abandonment of the gold standard in 1971. Gold, on the other hand, did not entirely disappear from the fashion scene.

Gold is still held in significant quantities by central banks, further cementing its financial system’s foundation. For a variety of reasons, gold deserves to be considered as the most excellent store of wealth. For starters, it is visually appealing. Again, this is due to the molecular structure of the compound, which makes it very stable. As a result, gold is not only helpful in the production of jewelry but is also valuable in the production of high-level industrial applications such as electronics.

Could Cryptocurrency Pose A Threat To Gold?

When comparing and contrasting the two, many parallels are considered between them. The two assets are uncommon – they are not as prevalent as other fiat currencies in the market. On the other hand, Bitcoin is a virtual currency that, unlike gold, does not exist in the real world and cannot be used for anything other than trade.

Being supported by blockchain technology, Bitcoin has paved the way for developing numerous other cryptocurrencies that do much more than serve as a medium of exchange and storage. Various areas of life, like the healthcare business, voting, automobiles, and financial services, have discovered incredible applications for these digital currencies (cryptocurrencies). All of these cryptocurrencies have seen a significant increase in value recently, mainly due to the rise of Bitcoin. Even the recent decline in the global bond market was unable to get back on its feet.

The volatility and dangers connected with cryptocurrencies, on the other hand, are essential considerations to keep in mind. Nonetheless, we may be getting closer to the day when we will have a new standard, which will most likely be Bitcoin. Want to trade your Bitcoin on your laptop or mobile phone? Visit bitcoin trading

What Do The Experts Have To Say About It?

When it comes to this issue, financial experts from all over the world have expressed conflicting opinions. While some indicated they would like to purchase Bitcoin and keep it for the next ten years, others said they would instead invest in gold.

Phil Baker

In addition, he places his bet on the precious metal. David Rosenberg makes several valid arguments, with which Baker agrees. “Gold has been a stable means of trade and store of value for at least four millennia, while Bitcoin has only been around for a few years.” However, there is space for cryptos since they have a fundamentally distinct character — that of being digital. However, this feature is another significant aspect indicating that Bitcoin will never be able to replace gold completely.”

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Filed Under: News

About Subhash D

A tech-enthusiast, Subhash is a Graduate Engineer and Microsoft Certified Systems Engineer. Founder of it4nextgen, he has spent more than 20 years in the IT industry.

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