Former U.S. Treasury Secretary Summers speaks out: Bitcoin is expected to become “digital gold”

Digital currencies are similar to “digital gold,” even if their importance in the economy is still limited.

Former U.S. Treasury Secretary Summers speaks out: Bitcoin is expected to become "digital gold"

According to Bloomberg, former U.S. Treasury Secretary Summers recently said that digital currencies are similar to “digital gold,” even though their importance in the economy is still limited.

Speaking on Bloomberg TV’s “Wall Street Week,” Summers said digital currencies have become an alternative to gold for those seeking assets “independent of government control,” a category to which gold has been a part for a long time. The newest addition to the market is digital currencies.

Summers believes that digital currencies have the opportunity to become a new form of secure wealth retention. He also believes that digital currency technology is here to stay and could exist as a “digital gold.

Summers said that if the market value of digital currencies accounts for one-third of the market value of gold and appreciates significantly from current levels, then this means that digital currencies will be part of the overall financial system for a long time to come.

Comparisons between bitcoin and yellow are currently very common in the cryptocurrency world, and people often have a variety of estimates about whether bitcoin’s total market cap will surpass that of other assets.

Yassine Elmandjra, a digital currency analyst at Ark Investment Management, said earlier this month that it’s not impossible for bitcoin to reach gold’s market cap in the next five years, assuming it’s around $10 trillion, which could mean the price of bitcoin will appreciate 14 times or more.

Elmandjra also said that digital currencies are not important to the overall economy and are unlikely to become the primary way people pay.

Elmandjra’s comments were echoed by Nobel laureate Paul Krugman, who doubted the value of digital currency technology as a medium of exchange or stable purchasing power, but said that some forms of digital currency could continue to exist as an alternative to gold.

Krugman said in the New York Times that even people like him who are skeptical of digital currencies are sometimes confused about the future future of gold.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/former-u-s-treasury-secretary-summers-speaks-out-bitcoin-is-expected-to-become-digital-gold/
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