This article is also available in Spanish.
Matthew Sigel, Head of Digital Asset Research at VanEck, recently made comments about Bitcoin’s potential to become a global currency standard, similar to gold, which has sparked controversy. This idea is gaining momentum, especially as the debate about the US Strategic Bitcoin Reserve heats up.
Related Reading
The Future of Finance: The Role of Bitcoin
Sigel said Bitcoin has the potential to have a major impact on the future of global finance. He asserts that the establishment of a crypto strategic reserve by the United States government, with an estimated value of 1 million BTC, would establish the leading crypto asset as a new form of currency.
This concept reminds us of historical times when nations accumulated gold to strengthen their economic capabilities. Sigel posits that this could attract the US to become the prime minister of a new financial era.
The gold standard once defined reserve assets.
Now, Bitcoin presents an opportunity to converge on a ‘Digital Standard’ to earn money.
It echoes gold’s role in reshaping global finance. pic.twitter.com/e1ogPe947R— matthew sigel, recovering CFA (@matthew_sigel) January 10, 2025
Gold vs. Bitcoin: Lessons from History
The comparison of crypto to gold is not new, but it has gained momentum recently as many governments experiment with digital currencies.
Gold is often seen as a safe haven and a reliable store of wealth, but Bitcoin offers unique advantages that no other asset does. It is essentially a digital asset, so unlike gold, transfers are faster and more portable. This digital environment makes it less vulnerable to physical theft and facilitates cross-border transactions.
Although mining helps produce gold, Bitcoin is not easily available as its supply is limited to 21 million coins. For those trying to adjust to economic uncertainty and inflation, this planned deficit could make BTC a tempting destination.
Global Perspectives and Reactions
There is a growing global buzz about the potential of Bitcoin. Due to recent political changes in the US, countries such as El Salvador have made Bitcoin legal tender, and leaders in other nations are trying to put similar policies in place. However, given the volatile nature of Bitcoin and the strong purchasing power of gold, some economists believe that this movement should be rejected.
Related Reading
Although Bitcoin offers modern advantages such as decentralization and immunity from government intervention, its price volatility, according to critics, may be an obstacle to its widespread acceptance as a means of exchange. As a result, the two assets differ in key factors that investors and decision makers should consider.
Sigel’s comments reflect renewed interest in how Bitcoin could reshape financial systems around the world. As discussions continue about whether it will eventually become a global standard, standing next to gold, both supporters and opponents will be watching to see how this story develops in the coming years. Perhaps the future of the currency depends on how these two assets evolve and interact in the growing digital economy.
Featured image from Pexels, chart from TradingView