On Thursday (July 15), prominent on-chain analyst Willy Woo made some comments that suggested he believes that those people who try to praise Bitcoin by calling it “digital gold” are doing the flagship cryptocurrency a disservice.
Woo thinks that Bitcoin is not a much better store of value of gold because it is like a digital version of gold but because it is more like decentralized digital gold.
And here is how Woo explained in the following tweet why that decentralization is important:
“Bitcoin is digital gold? Gold FAILED. The Gold Standard failed. Gold’s failure lead to fiat. Why? It was centralised. When governments ran out of gold, money decoupled from gold and we got fiat. Bitcoin is decentralised gold, it removes gold’s failures.“
And when one commenter said that at least gold does not rely on miners to exist, Woo said that this would not be a problem because economic incentives would ensure that if one Bitcoin miner quit, other people would quickly replace them:
If they quit, I'll plug one in and take that revenue. Thank you miners.
— Willy Woo (@woonomic) July 15, 2021
Crypto analyst and journalist Joseph Young said earlier today that even though Bitcoin has suffered a 50% price correction this year, it still has managed to outperform gold by 15% in the year-to-date period:
The battle of store of value and inflation hedge in 2021:
Bitcoin +10% YTD.
Gold -5% YTD.
The numbers speak for themselves.
Even after a 50% $BTC pullback.
— Joseph Young (@iamjosephyoung) July 15, 2021
DISCLAIMER
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
IMAGE CREDIT
Photo by “petre_barlea” via Pixabay
