This article is also available in Spanish.
Matthew Sigel, director of digital asset research at VanEck, has recently commented on the potential of <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”nofollow”>bitcoin become a global monetary standard, similar to gold, which has generated controversy. This view is gaining momentum, particularly as the debate over a strategic bitcoin reserve in the United States intensifies.
Related reading
The future of finance: the role of bitcoin
Sigel stated that bitcoin has the potential to significantly influence the future of global finance. He claims that the establishment of a crypto strategic reserve by the United States government, with an estimated amount of 1 million btc, could establish the leading crypto asset as a new form of currency.
This concept recalls the historical periods in which nations accumulated gold to strengthen their economic capabilities. Sigel suggests that this could catapult the United States to become the standard bearer of the new era of finance.
<blockquote class="twitter-tweet”>
The gold standard once defined reserve assets.
Now, bitcoin presents the opportunity to converge on a “digital standard” for money.
It could well reflect gold's role in reshaping global finance. pic.twitter.com/e1ogPe947R
— matthew sigel, recovering CFA (@matthew_sigel) <a target="_blank" href="https://twitter.com/matthew_sigel/status/1877696306866466827?ref_src=twsrc%5Etfw” rel=”nofollow”>January 10, 2025
Gold vs. bitcoin: lessons from history
The comparison of cryptocurrencies to gold is not new, but it has gained traction recently as more governments experiment with digital currencies.
Gold is often considered a safe haven and reliable store of wealth, but bitcoin offers unique benefits that no other product offers. It is essentially a digital asset, so unlike gold, transfers are fast and considerably more portable. This digital nature makes it less vulnerable to physical theft and facilitates cross-border transactions.
While mining helps produce gold, bitcoin is inherently rare as its supply is limited to 21 million coins. For those trying to offset economic uncertainty and inflation, this planned shortage could make btc a tempting substitute.
Global perspectives and reactions
There is a growing global buzz about the potential of bitcoin. Due to recent political changes in the US, countries like El Salvador have made bitcoin legal tender and leaders of other nations are trying to implement similar policies. However, given the erratic nature of bitcoin and the constant purchasing power of gold, some economists believe this move should be rejected.
Related reading
Although bitcoin offers contemporary benefits such as decentralization and immunity from government intervention, its price volatility, critics say, may be a barrier to its widespread adoption as a medium of exchange. As a result, the two assets differ in the crucial factors that investors and decision makers need to take into account.
Sigel's words reflect a new interest in how bitcoin could reconfigure financial systems around the world. As conversations continue about whether it will eventually become a global standard, alongside gold, proponents and detractors alike will be watching this story unfold in the coming years. Perhaps the future of money depends on how these two assets evolve and interact in an increasingly digital economy.
Featured image from Pexels, chart from TradingView
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
