Bitcoin News: Alex Gurevich, a professor of Mathematics and an ex-JPMorgan executive, shares his belief in an op-ed on Yahoo! Finance, that Bitcoin (BTC) is getting closer to becoming digital gold “with every single day it doesn’t die.”
He stated in the op-ed:
“Despite the rise and fall of various altcoins and fork considerations, “time” works FOR Bitcoin, not AGAINST it. Every day it doesn’t disappear, it gets one step closer to a permanent status of digital gold,” he went on to state in the op-ed. Taking his readers down memory lane on why there was demand for gold and precious metals, Gurevich stated that precious metals had always been used as a means of exchange for centuries, as they “do not oxidize easily and remain in an uncorrupted form” (hence, retain their value over time).
Elaborating his choice of precious metal to compare BTC, he explained that amongst all precious metals, gold is neither the most common nor the rarest. However, over the centuries it has managed to form a middle ground, it is common enough to be recognised as a currency all over the world, but not common enough that mining can easily disrupt its price.
Gold has managed to work this advantages in its favour and earned worldwide credibility. Gurevich compares Ether with digital copper, implying that its value is driven by the demand for tech. Whereas BTC will be driven by the sole need for it to be a store of liquidity value.
Explaining his belief in BTC as a forerunner he further explains that the advantage of incumbency has favoured the currency, Quite like gold has surpassed other precious metals, which might or might not have had better aesthetic advantages, ubiquity, and rarity than it, BTC will outlast its competitions.
“Given the historical trading pattern in precious metals, the buy of Bitcoin in 2015 was relatively easy. But now, at 20X (including fork) the early prices, it is a more complicated trading dilemma. Bitcoin may or may not be a “bubble,” but it is important to remember that it did have a major ‘burst’ in 2014 and, even this year, the market has witnessed Bitcoin endure two meaningful corrections.”
He further adds that “every time it survives and stabilizes, it gets extra gold credibility.” Not being alone in his assumptions, Gurevich shares similar sentiment with Apple co-founder Steve Wozniak, who in an interview with CNBC, called Bitcoin the “only pure digital gold.”
“Only Bitcoin is pure digital gold… and I totally buy into that. All the others tend to give up some of the aspects of Bitcoin. For example, being totally decentralized and having no central control. That’s the first one they have to give up to try to have a business model.”