The term “digital gold” has been hotly contested in relation to Bitcoin (BTC), the largest cryptocurrency in the world by market capitalization.
Bitcoin supporters exploit the argument that their asset class is “digital gold” to persuade investors to accept it. These Bitcoin advocates contend that the most valuable asset class can serve as a gold-like store of value and utility.
Cryptocurrency expert and Cardano founder Charles Hoskinson recently endorsed the claim that Bitcoin is digital gold.
This was announced by the Cardano CEO during a 16-minute live YouTube session. His words were reported as follows:
“You hear a lot about Bitcoin being digital gold. It may surprise you guys that I do agree with that. I think Bitcoin is not only digital gold, but it has real use and utility.”
BTC Is Missing Two Key Qualities
Hoskinson considers Bitcoin to be an excellent store of value but believes that because of its extreme volatility, it lacks the two key characteristics of money: a medium of exchange and a unit of account. Gold, on the other hand, is a different story.
He continued, the problem is that Bitcoin is not very effective as an exchange medium and a unit of account. Pricing items in BTC is challenging. People typically only want to store Bitcoin instead of using it to make real-world purchases.