Due to the similarities between the gold and Bitcoin markets, one cryptocurrency expert believes that the drop in Bitcoin prices might have a ripple effect on the gold markets.
According to some US regulators, Bitcoin is ‘digital gold’ so there is need for it to be viewed as a commodity instead of a medium for business transactions.
Co-founder of Winklevoss Capital, Tyler Winklevoss identified Bitcoin as ‘gold2.0’ predicting that Bitcoin could see a growth of $7 trillion.
In an interview with Bloomberg News, Winklevoss stated that gold is worth $7 trillion in the market whereas Bitcoin now stands at around 100 to 200 billion, but he is optimistic that it will reach gold’s level.
He went on to add that Bitcoin is possibly slowing down gold. ‘It is gold 2.0. So it has a growth rate from around 100 billion to 7 trillion.
Chief executive of the London Block Exchange, Benjamin Dives is with the perception that the instability linked with Bitcoin will stop in no given time.
According to the London Block Exchange, by the closing of the year close to one in three British millennials will be involved in cryptocurrency activity.
There are forecasts that suggest that the increased popularity of Bitcoin will make it possible for digital currencies to surpass bonds and shares for people between the ages of 18 and 35.
However, Mark O’Bryne, founder of gold and silver merchant Goldcore thinks otherwise. O’Bryne says that there are an increasing number of people who are investing in gold as opposed to cryptocurrencies; this despite the intense media focus on Bitcoin and other cryptocurrencies. He added that people are coming to the realization that there are greater risks with digital assets as opposed to investing in gold.