Bitcoin analysts consider bitcoin as gold and compare Bitcoin and gold as bitcoin has many unique features, same as gold. Mike McGlone from Bloomberg Intelligence even said that bitcoin is soon to replace gold and the regulators of the United States will attempt to interrupt its advancement. One of the senior commodity market strategists stated that “digitalization of money and finance” are the two main reasons behind the excellent growth of the bitcoin market against gold. Factors that helped bitcoin are the same as those that helped the U.S. dollar earn governance over gold and other precious metals in an organic way.
The comments of McGlone have appeared as carried away from a conference that held at Bretton Woods hotel in New Hampshire where there were majorly macro analysts, investors and economists that included Amy Oldenburg from Morgan Stanley and Jurrien Timmer from Fidelity Investment, along with yahoo.com.
Bretton Woods is one of those famous economists. They are known across the world for hosting the United Nations Monetary and Financial Conference that was later led to the commitment that Australia, the United States, Japan, Western European countries and Canada will tie their traditional currencies to precious metals like gold. This resulted in the formation of a new monetary system known under the title “Bretton Woods system”.
But a change took place when President of the U.S., Richard Nixon, announced taking the dollar off the precious metal standard. Economists were against taking the dollar off the gold standard and said that it was the barbaric remnant. In the latest conference, “Bretton Woods: The Realignment”, it was announced about the end of the Bretton Woods system, and it mainly discussed focusing on new financial assets that are emerging like Bitcoin. It is believed that financial assets like cryptocurrencies will soon replace the dollar and become global reserve assets quickly.
McGlone stated that Bitcoin has the features that challenge the position of gold as a competitor to the greenback.
An economic historian of Princeton University, Harold James, has said that digital currencies and technology are driving the monetary revolution, which has led to the end of the global importance of greenback. People and the government are worried about whether the dollar will survive or not. But it has been noticed that the dollar has met unparalleled economic conditions after the global pandemic of covid-19.