Bitcoin Is Digital Gold and Ethereum Is Digital Silver, Says DB Analyst

In a recent research report, Marion Laboure, an Analyst at Deutsche Bank Research, mentioned that Bitcoin has the potential to become 21st-century gold. Additionally, Laboure highlighted the rising adoption of Ethereum, the world’s second most valuable digital asset, in decentralized finance (DeFi) and non-fungible tokens (NFTs).

Laboure mentioned that if Bitcoin is ‘Digital Gold’ then Ethereum would be ‘Digital Silver’. Deutsche Bank’s analyst outlined that it is highly unlikely for any other digital currency to beat Bitcoin and Ethereum. In addition to the rising popularity of cryptocurrency assets, Laboure mentioned some of the disadvantages associated with BTC and ETH.

Laboure highlighted that the lack of regulation, high energy usage and extreme Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term are some of the main drawbacks of Bitcoin, Ethereum and other cryptocurrency assets. According to Laboure, the use of cash as a mode for Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term will decline in the future.

“People have always sought assets that were not controlled by governments. Gold has had this role for centuries. And yes, I could potentially see Bitcoin becoming the 21st-century digital gold. Let’s not forget that gold was also volatile historically. But, it is important to keep in mind that Bitcoin is risky: it is too volatile to be a reliable store of value today. And, I expect it to remain ultra-volatile in the foreseeable future,” Laboure said in the latest report.

Bitcoin vs Fiat

Commenting on the comparison between BTC and traditional fiat currencies, Laboure said that Bitcoin’s limited supply makes it a unique protection tool against inflation of fiat currencies. “The supply of Bitcoins is fixed. The maximum number of Bitcoins that will ever exist is just under 21 million. And round about 89 percent of the total supply of Bitcoin is already in circulation. In many fiat currencies central banks control the supply and have been increasing it significantly in recent years,” she added.

Earlier this month, El Salvador became the world's first country to officially recognize BTC as a legal tender.