After changing roles several times since its launch in 2009, Bitcoin (BTC) is now considered a reserve of comparable value to gold, a feature that Abra CEO Bill Barhydt agrees with.
„Today, Bitcoin is best used as a store of value that will eventually become less and less correlated with traditional investment markets,“ Barhydt told Cointelegraph.
The creator of Stock-to-Flow says Bitcoin „is no longer a toy.“
Bitcoin’s role transformation from the beginning
After Bitcoin’s on-chain start in 2009, the asset underwent astonishing price growth, going from less than USD 1 to almost USD 20,000 at its 2017 peak. Along with this price change, several views and use cases for the asset have emerged, according to the creator of Bitcoin’s stock-to-flow model, PlanB, during an interview with broadcaster Peter McCormack.
When Bitcoin Future reached USD 1, the narrative focused on the use of currency as a transactional currency. As its price continued to experience tremendous growth over the past decade, the asset stood out as a possible option for wealth storage. The asset has also seen its fair share of comparison with gold, often labeled „digital gold.
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„Bitcoin’s nickname as ‚digital gold‘ is the best analogy for this I’ve seen so far,“ Barhydt said following his comment on Bitcoin’s reserve value.
Bitcoin’s Correlation with Major Markets
Bitcoin, in theory, has no direct link to the major financial markets, as it moves away from government control in a borderless way. However, the asset has shown an apparently correlated action with traditional markets in points, while it travels its own price path at other times.
Bitcoin and stocks break reverse correlation trend in 2019
„Bitcoin represents a fantastic insurance policy against traditional markets, while governments go crazy making their economies fall apart irresponsibly,“ said Barhydt.
„It’s also the best showcase for global decentralization ever created. For the first time, we have a decentralized system of transaction processing, storage and minting without a central off switch.
Morgan Creek Digital co-founder Anthony Pompliano has also expressed his opinion of Bitcoin as an uncorrelated asset on several occasions.