Expert Says Bitcoin Will Gain Traction in Treasuries While Gold Remains a Sleeping Giant
Bitcoin could play a bigger role in discussions about corporate and government treasuries in the coming years, says industry expert Timothy Kotzman.Meanwhile, gold will continue to be the sleeping giant of legacy finance. Kotzman shared this outlook in a recent panel titled Bitcoin vs. Gold: Which Offers Greater Strategic Value, moderated by Eleanor Terrett, a pro-crypto journalist and podcast host.Bitcoin's Role in the Future EconomyEarlier in the panel, Kotzman suggests that Bitcoins rise is not just a trend but a technological shift that will redefine how the world approaches wealth storage and management. He likened Bitcoin to a "monkey bar" positioned between gold and artificial intelligence (AI). He argued that while gold has served as a reliable store of value for centuries, Bitcoin is now outperforming traditional markets. Notably, CryptosRus, an account on X, pointed out in March that despite the market pullback, Bitcoin continued to outperform all other assets since the U.S. election. According to the data, Bitcoin has seen a 19.4% pullback from its post-election peak, yet it still leads all assets, outpacing sectors like gold and equities.https://twitter.com/CryptosR_Us/status/1902086864825401666As global economies transition to digital currencies and the influence of AI expands, Kotzman believes Bitcoin will emerge as a necessary asset for maintaining economic reality in an increasingly digital world. According to him, Bitcoin's role as a "technology tethering us to what is real" will be crucial in the coming years.Gold's Continued SignificanceHowever, Kotzman does not discount golds place in the financial ecosystem. He acknowledged that gold will continue to be an important asset for those who prefer physical, tangible stores of value. Yet, as digital economies evolve, golds appeal may diminish for future generations. Bitcoins technological benefits and ability to operate within the fast-moving digital landscape position it as a viable alternative to gold, especially for younger investors and institutions looking to diversify into digital assets.Notably, during the panel discussion, Eleanor Terrett asked about Bitcoins shift from a peer-to-peer medium of exchange to a store of value. The response clarified that Bitcoin can serve both functions. Everyday transactions will primarily occur on Layer 2 solutions and above. On the other hand, large-scale transfers, particularly those by nation states, will take place on Bitcoins base layer.Fidelitys Perspective on Bitcoin vs. GoldJurrien Timmer, Director of Global Macro at Fidelity, has previously commented on the Bitcoin versus gold debate. Timmer presented a scenario in which Bitcoin could eventually surpass gold, although he noted that it would take decades. In a March 28 post, Timmer analyzed gold's compound annual growth rate (CAGR) since 1970 and applied similar models to Bitcoins adoption and growth. His analysis suggested that Bitcoin could match golds market cap by 2035. Using the "power law curve," Timmer predicted that Bitcoin could reach a market cap of $44.62 trillion by that time, driving its value to $2.25 million per coin. However, he also mentioned that golds growth might continue at a faster pace, positioning it as a "quieter older sibling" to Bitcoin.
Text source: The Crypto Basic
