According to Bloomberg, former US Treasury Secretary Summers recently stated that digital currencies are similar to “digital gold” even though their importance in the economy is still limited.
During the “Wall Street Week” hosted by Bloomberg Television, Summers said that for those seeking assets “independent of government control”, digital currency has become an alternative to gold, and for a long time. , Gold has always belonged to this category of assets.
Summers believes that digital currency has the opportunity to become a new form that allows people to keep wealth safely. He also believes that digital currency technology will continue to exist and may exist as a kind of “digital gold”.
Summers said that if the market value of digital currency accounts for one-third of the market value of gold, and it appreciates sharply from the current level, then this means that digital currency will become part of the entire financial system for a long time to come.
At present, comparing Bitcoin with yellow is very common in the currency circle, and people often have various estimates on whether the total market value of Bitcoin will surpass other assets.
Yassine Elmandjra, a digital currency analyst at Ark Investment Management, said earlier this month that assuming the market value of gold is around 10 trillion U.S. dollars, it is not impossible for Bitcoin to reach the market value of gold in the next five years. This may mean that the price of Bitcoin will increase. Appreciation 14 times or more.
Elmandjra also said that digital currency is not important to the overall economy and is unlikely to become the main way people pay.
Elmandjra’s comments were echoed by Nobel Prize winner Paul Krugman, who doubted the value of digital currency technology as a medium of exchange or stabilizing purchasing power, but he said that as an alternative to gold, some forms of digital currency may continue exist.
Krugman stated in the New York Times that even people who are skeptical of digital currencies like him sometimes feel confused about the future of gold.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.