As we all know, gold and silver are regulated because they are physically available. The value of gold and silver also depends upon various factors, such as people’s demand because supply is already limited and the government’s new policy about gold and silver. Various trending news can also influence people to purchase and sell that will rise and fall its value. So similarly, bitcoin is known as digital gold because it is finite in quantity as gold and in high demand. Still, the thing that makes it unique is no parties get involved, and it is available only digitally. And Ethereum is the second-highest value digital crypto coin after this digital gold (bitcoin) known as the digital silver. Hence, bitcoin and Ethereum are known as digital gold (bitcoin) and digital silver (Ethereum). For more info, go to yuan-pay-group.net .
Who is Marion Laboure?
Labour is working on making macro strategies for a famous bank in London, i.e., Deutsche bank, with capital experience in public and private and second in finance. She is also a lecturer at Harvard University. As an economist, she said that bitcoin will become the gold of the twenty-first century because of its high volatility and because she researched a lot about cryptocurrency.
Not a mode of payment
Labour said that bitcoin is not a standard mode of payment that everyone can use for their daily transactions because most people use it for speculation and investing purposes. At the beginning of bitcoin, the people knew that they would use it for different purposes like modes of payment, and in that stage, most people used it to make global payments at a significantly cheaper cost. But who held digital gold for an extended period, get benefited from its price, and afterwards, they posted many articles about earning through this digital gold. Now people only get the information about this digital coin as an investment or a mode of making money. So people are not aware around the world. India is the most prominent example where people will never use it as payment because the vendors are also afraid to use this currency to accept payments.
Not a deflation currency
Many people say that this digital gold is a deflation currency which means the value in the future of this crypto coin will rise in the seldom process. Marion claims that bitcoin is not a deflation currency because it is highly volatile. The cost of it depends upon the people’s beliefs. It will go down in the future if people will stop following or trading it for different purposes, but it will not be possible because many countries have banned it, but it is making a more robust currency.
Three reasons for its ultra volatility
According to the labourer, there are the following three reasons that make it ultra-flexible in value given below:-
- Almost in most areas, people know it as a mode of making money by holding it for an extended period (investment) and short period (trading), and they are spending their home currency on it. So buying and selling on a bulk level makes it more flexible in value.
- The people who purchase this digital gold in bulk (large purchase) will also impact this coin’s value because value depends upon demand.
- The value depends upon the value in people’s eyes about this digital gold because if people believe in it, they will spend their money on it, and if they do not think, they will not put their cash in it, which will make it volatile.
Bitcoin’s feature, according to Laborer.
- This gold coin is primarily known for faster transactions because it is not backed by any financial institutions that will verify it and give their consent to transfer. It takes ten minutes to move the coin from one wallet to another on a blockchain platform.
- The financial institutions can modify the fees according to their profit level, and people have nothing to convince them to decrease the transactional costs because they maintain our cash. Still, there is no intermediate institute in digital gold, so you have to pay significantly fewer fees for a single transaction worldwide.
- This digital gold is costly in the market compared to the other crypto coins because it was the beginning of the third-party removal system. However, with increasing awareness, people started buying, and now the value is enormous.
She also said that many regulations would come at the end of this year because all the economies will think to regulate it as India has restricted by applying the tax system and using guidelines.