The advancement in the digital ecosystem as we have it today may give Bitcoin (BTC) a comparative advantage over Gold. According to Mike McGlone, Bloomberg Intelligence Senior Commodity Strategist who supports this position,
In a World Gone Digital, #Bitcoin May Surpass #Gold — The past year has been a stepping stone for Bitcoin into the mainstream of investment portfolios and for the digital evolution of money, which should keep the benchmark crypto on an upward price trajectory in 2021.
Mike’s position was centered on the adoption rate Bitcoin saw in 2020 as both retail and institutional investors continue to pump liquidity to bolster their Bitcoin reserves. Among the institutional investors that are currently bullish on Bitcoin, MicroStrategy stands out as the publicly traded Business intelligence firm now has up to 40,824 BTC to its name.
Advances in Digital Payments Puts Bitcoin at the Forefront
The advent of Bitcoin was targeted primarily to serve as a means of transferring value which has increased its use case in cash transactions since its inception. Now, various merchants now accept Bitcoin as a means of payment. These merchants include but not limited to A1 Telekom, one of Austria’s telecommunications firms that added provisions to accept payments in Bitcoin.
Keplerk, a French-based cryptocurrency startup also relaunched its Bitcoin for tobacco service in as many as 5200 outlets across France. Through the initiative, people can now pay for tobacco purchases with Bitcoin.
As the embrace for Bitcoin as the new normal in digital asset-inspired transactions, online payment giant PayPal has also announced support for Bitcoin and a select number of altcoin which can be used to complete transactions across the channels of its over 28 million merchants.
On Pace to Win The Relevance War
Bitcoin has thus far witnessed increased comparison with Gold, especially as a hedge against inflation. While the potency of Gold as a hedge against inflation has been tested for decades, Bitcoin’s is still in its infancy, and as a result, might be too early to affirm its potency.
Nonetheless, Bitcoin is on pace to win the relevance war as a store of value. This will be further confirmed if the adoption rate the cryptocurrency experienced this year is sustained in the coming months and years.