After several role changes since the start in 2009 Bitcoin (BTC) is currently considered a value reserve comparable to gold, a trait that Abra CEO Bill Barhydt agrees with.
“Today Bitcoin is best used as a store of value that over time correlates less and less with traditional investment markets,” Barhydt told Cointelegraph.
The transformation of the role of Bitcoin from the start
After the launch of Bitcoin’s on-chain in 2009, the asset saw astounding price growth, which peaked in 2017 from under $ 1 to nearly $ 20,000. Along with this price change, according to the inventor of the Bitcoin stock-to-flow model PlanB, during an interview with broadcaster Peter McCormack, there were several views and use cases for the asset.
When Bitcoin hit $ 1, the narrative focused on using the currency as the transaction currency. As the price has continued to grow enormously over the past decade, the asset has been a possible option for storing assets. The asset also has a reasonable proportion compared to gold, which is often referred to as “digital gold”.
“Bitcoin’s nickname as ‘digital gold’ is the best analogy I’ve seen so far.”Barhydt said after commenting on Bitcoin’s reserve.
The correlation of Bitcoin with important markets
Theoretically, Bitcoin has no direct connection to the most important financial markets, as it is boundlessly away from government control. However, The asset has shown an action that appears to correlate with traditional point markets, while at other times it follows its own price path.
“Bitcoin is a fantastic insurance policy against traditional markets as governments go crazy and their economies fall irresponsibly.”Barhydt said.
“It is also the best showcase for global decentralization that has ever been created. For the first time, we have a decentralized transaction processing, storage and coin system without a central off switch.”
Morgan Creek Digital’s co-founder, Anthony Pompliano, has voiced his opinion on Bitcoin several times as an uncorrelated asset.