The rivalry between Bitcoin (BTC) and gold has been ongoing for years, with gold advocates claiming that Bitcoin cannot replace gold.
However, Bitcoin is becoming more trusted in the corporate world every day, which supports the digital gold narrative of BTC.
At this point, Deutsche Bank analysts published a new report concerning Bitcoin and gold.
Accordingly, Deutsche Bank analysts stated that Bitcoin is actually following in the footsteps of gold and could become a part of the balance sheets of many central banks by 2030.
Despite concerns about Bitcoin's volatility, analysts stated that central banks will also accept BTC thanks to its legitimacy and liquidity, limited supply, diversification advantages, and ability to hedge against inflation and geopolitical risks.
Analysts noted that although gold does not provide regular dividends or returns to investors like Bitcoin, it is seen as a safe haven during periods of volatility, and that US-led adoption could elevate Bitcoin far beyond its status as a speculative asset.
“A strategic Bitcoin allocation could emerge as a modern cornerstone of financial security, mirroring the role of gold in the 20th century.
Considering volatility, liquidity, strategic value and trust, we believe that Bitcoin will be on the balance sheets of central banks along with gold by 2030.
At this point, history seems to be repeating itself for gold and Bitcoin.
Like Bitcoin, gold was once subject to skepticism, suspicion, and speculation. Like Bitcoin, gold has experienced periodic periods of volatility, its performance often determined by the slightest shifts in public perception.
However, we believe that Bitcoin adoption will continue as regulatory developments, macroeconomic conditions, and above all, time, lead to greater public acceptance of Bitcoin as a store of value.”
*This is not investment advice.