Bitcoin is on the verge of outpacing gold, as many analysts are already predicting, as BTC soars to new highs. Bitcoin is already touching the $106K mark, with industry giants touting the token as a phenomenal store of value asset to be considered in the long run. Will BTC emerge as the new digital gold, outshining the traditional yellow metal in the long haul?
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The Global Talks Considering Building Bitcoin Reserves Gain High Traction
Leading countries and nations are now potentially considering building Bitcoin reserves as BTC charts its own independent price path. The token has already claimed the $106K mark, rising high on the possibility of the US mulling over building a Bitcoin reserve. In one of the recent interviews, current president-elect Trump shared how he is adamant about making the US a leading crypto hub of the world.
“We’re going to do something great with crypto because we don’t want China or anybody else. Not just China, but others who are embracing it—and we want to be the head,” Trump told CNBC.
With the Trump regime openly supporting BTC, the race to embrace the cryptocurrency domain has gained global traction. Moreover, the idea of Bitcoin as an effective store of value has also gained immense popularity.
“I think every country is appraising BTC as an emerging geopolitically relevant asset class.” Matthew Pines, head of strategy at the Bitcoin Policy Institute, told BitcoinMena.
In this wake, several governments have bolstered Bitcoin mining activities to stack as much BTC as they can to lead the power race ahead in the future. Per AGBI, more than 60% of the BTC hash rate currently resides in North America, but countries like the UAE, Saudi Arabia, and other Middle Eastern nations are vying hard to secure the top spot for BTC mining.
“Countries are going to want to stack as much bitcoin as possible. They’re going to want as many bitcoin miners as possible in their territory.” McCarty said.
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BTC As Digital Gold: Lucrative Pros Crushing Cons
The idea of BTC as an effective store of value has already been discussed on a global basis. With Jerome Powell, the head of the Federal Reserve, acknowledging Bitcoin as an effective store of value, the concept has gained incredible traction and is attracting high-value propositions lately.
“People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar; it’s a competitor for gold.
Bitcoin Mena panelists noted how Bitcoin’s decentralized nature makes it resistant to external control, making it an attractive financial tool to pursue. In addition to this, BTC’s fixed supply makes it an effective hedge against inflation, embracing Gold’s value proposition in the long haul.
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