Bitcoin has been trading around the $3,000 to $4,000 price level since November 2018, but a lot can still be expected from the asset. The latter can be likened to the opinion of Garrick Hileman, an Economist who believes that Bitcoin is a store of value and its major use case is as digital gold, reports a media outlet on March 26.
Bitcoin is a Store of Value and its Major Use Case is as Digital Gold
Based on the report, Garrick Hileman, head of research at Blockchain and research associate at the London School of Economics affirmed that Bitcoin is a store of value. As a result, its major use case today is as a digital gold. He further outlined that if central banks begin to adopt Bitcoin, then it will significantly impact on the virtual asset’s price.
Asides pointing out Bitcoin’s major utility, the Economist also outlined that there may have been regulatory delays, but it only helped to legitimize Bitcoin. The virtual asset has also responded positively on several occasions in terms of its price, despite these regulations. Likewise, the government is yet to ban Bitcoin which tells a lot about the digital currency.
Auctioning of Bitcoin by the US and Australian Government
Another instance which the cryptocurrency enthusiast pointed out, is the auction of seized Bitcoin by the US and Australian Government. According to Hileman, hard drugs have never been auctioned after being seized and that happening in the case of Bitcoin shows how the government regards this asset class. “There’s a growing acknowledgment that bitcoin’s going to be here,” he added
While many may not agree with regulating the cryptocurrency industry, the likes of Winklevoss Twins will be among the first to promote it. In a South By Southwest (SXSW) conference in Austin on March 8, the duo outlined the need to protect investors in order to boost their confidence in the market.
Recent Events in the Crypto Industry Has Brought Mistrust
They also made reference to some recent events that has brought about mistrust in the industry and one of such, is the QuadrigaCX exchange. Therefore, “you need some kind of regulation to promote positive outcomes,” Cameron Winklevoss added.
These aside, a closer look at Garrick Hileman’s comment about Bitcoin’s major use case can also be likened to that of Mike Novogratz, a former Goldman Sachs partner. Novogratz while on Bloomberg TV on February 13 pointed out that Bitcoin is going to be the digital gold and the sovereign currency will neither go to the U.S. dollar nor Chinese Yen.