Long story short, cryptocurrencies are effectively nothing more than a proverbial drop in the bucket of wealth, money, and power. And according to Summers, this is right.But, many are sure that cryptocurrencies have lots of legroom, lots of room to grow, as they suggest
there’s no way that Bitcoin stops at 0.05% of the world’s wealth.
As Gemini’s Tyler Winklevoss once
explained, Bitcoin is “
better at being gold than gold itself” — a sentiment held by many long-standing cryptocurrency investors.
The Mark Zuckerberg rival specifically looks to the fact that
BTC is portable, sculpted for today’s digital society, even scarcer than the metal, censorship-resistant unlike traditional assets, and decentralized as a way to back this cheery sentiment. At one point, the cryptocurrency entrepreneur added that the only thing that gold has over BTC is a “3,000-year headstart.”
What’s also important is that
many in mainstream financial channels and media have begun to confirm that they
think Bitcoin is a proper store of value. Just look to Grayscale’s “drop gold, buy Bitcoin”, campaign, which generated a fair amount of discourse in the American investment scene.
Just recently,
Steven Mnuchin purportedly gave Bitcoin a nod as a speculative store of value. If true, this would mark a massive step forward in the public’s knowledge of the cryptocurrency.
You see, for most of the asset’s life so far, it has been deemed a criminal’s coin, used for nothing else but things that aren’t kosher. But,
with Mnuchin acknowledging it as a viable asset, maybe even a proper store of value, it becomes validated in the eyes of millions of American citizens.
This comes shortly after Jerome Powell of the Federal Reserve made a similar comment in front of a group of lawmakers.
Also, Chamath Palihapitiya, a former Facebook executive, told CNBC that Bitcoin is the perfect hedge “against the traditional financial infrastructure”. He elaborated that if fiscal or monetary policy is wonky, as it arguably is now, having Bitcoin is like “the schmuck insurance you have under your mattress”.