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Bitcoin is 'digital gold'; this is the true power of the cryptocurrency

Kitco News

Bitcoin has the potential to not only be used on a broader scale as a form of payment by consumers, but also be adopted by institutions and governments on several levels, said Michael Casey, chief content officer at CoinDesk.M

Bitcoin’s primary use right now is as a store of value, while it still has problems relating to its use as a form of payment, Casey said.

“We are moving inexorably into a more digitalized world, and we’re also seeing fiat currencies becoming digitalized,” he said. “I do think that an alternative, de-politicized store of value, one whose monetary policy lives outside of that traditional national currency-driven model, is something that becomes a viable hedge or viable alternative, just in the way that gold has always played that role in the analog world.”

Casey said that bitcoin can hopefully play a “key role” in providing consumers as another way to hedge against uncertainties in the world.

“I also think that bitcoin can play a really interesting role as a source of collateral and therefore building lending systems on top of that,” he said.

On government adoption, Casey said that it is likely that developing nations will be the first to use bitcoin on a large scale.

“There’s this potentially powerful role that it will play as an underpinning reserve asset, not so much a reserve currency…but as a reserve asset upon which other forms of financial innovation can be developed,” he said.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.