Bitcoin (BTC) is making headlines this week. The latest headline comes after CFTC chairman J. Christopher Giancarlo stated in an interview with CNBC that Bitcoin has similar characteristics to gold. But is Bitcoin similar to gold? Let’s see if there’s truth in the statement.
Is Bitcoin Similar to Gold?
This week, Giancarlo essentially stated that while Bitcoin has elements of numerous asset classes, it is evident that BTC has similarities to gold. Giancarlo went on to say that there are elements of the commodity in BTC that are subject to CFTC regulations. Further, Giancarlo then stated that even though Bitcoin has similarities to gold, it still is not an ideal method of payment. Instead, the CFTC chairman believes the digital currency has more potential in terms of a long-term buy and hold strategy.
Giancarlo is not the first person to say that Bitcoin has similar characteristics to gold, either. In fact, many have called it “digital gold” in the past. These reports claim that this is because the cryptocurrency has seen price increases as a result of geopolitical tensions around the globe. That said, gold is not the only commodity that has witnessed fluctuations due to these tensions. Meanwhile, last year, Goldman Sachs said that Bitcoin is not the new gold, as gold is better at containing its purchasing power. Additionally, Goldman Sachs said gold has a lower daily volatility.
Bitcoin Similar to Gold – The Takeaway
Where do you stand on the question of whether Bitcoin has similar characteristics to gold? Is it true? False? Voice your opinions below.
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