19 March 2018

'Bitcoin is already used as gold'

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Cryptocurrency values, especially Bitcoin, have been growing at enormous rates during the past year. However, still a lot of people distrust this financial instrument, as well as blockchain technology in general. reports citing Sputnik.

The price rollercoaster that characterized Bitcoin in 2017 hasn't created much trust among investors and ordinary people for cryptocurrencies in general. Artem Koltsov, chief of the council on digital economy and blockchain technology in the Russian State Duma, believes that despite the lack of confidence surrounding cryptocurrencies, they, as well as blockchain, will be commonly used in the future.

He is confident that blockchain can be used by governmental bodies and as a basis for financial technologies, while cryptocurrencies can help reduce the costs of transactions between economic entities.

Koltsov believes that one should not underestimate Bitcoin and that it will be used as a capital savings asset in the future, just like gold is used today. Another expert who shared his views is Stepan Gershuni, a partner at New Mining Company, is also adamant about the bright future of Bitcoin, as it is the most widespread and safe cryptocurrency that currently exists.

He has no doubts that one day Bitcoin will replace gold as the money-saving asset, as it can be more easily transferred, separated into pieces, and better protected.

"By using cryptography one can preserve Bitcoin, but not gold. Bitcoin is already used for the same purpose as gold […] because it is also not tied with any economy in the world […] it is a safe-harbor to survive the downfall of any national currency," Stepan Gershuni noted.

Interest in cryptocurrencies started to grow among investors in 2017 after a significant rise in Bitcoin's price on cryptoexchanges. The growth of over 1000% in one year caused concern among financial experts that the Bitcoin market might turn into a financial bubble and that its downfall could happen at any moment. At the beginning of 2018, Bitcoin lost almost half its value, but managed to partially regain its positions later.

2018.03.09 / 23:44
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