Last week, we were asked. “How can Bitcoin overcome volatility and become the next digital gold?” Here’s our take:
With Bitcoin, it’s already happening. Any market is volatile at first because it has few participants. Once it gains weight, the price fluctuations smooth out.
It’s a bit like a new restaurant. At first it swings between busy and empty. Once it’s popular, a few people leaving or entering is just a 2% change. As Bitcoin and other crypto assets like Ether get more investors, they’ll become almost boring.
2020 has seen the story go from Bitcoin as a speculative asset to long-term, inflation-proof investment and store of value. It’s also moving more like gold, as investors start treating it as a safe haven.
These aren’t just individual investors, either. Major companies have moved multimillion-dollar portions of their balance sheets into Bitcoin.
The growth of blockchain is also changing the global economy. Every industry from medicine to transportation, as well as government agencies are researching and deploying blockchain technology. So crypto assets will soon be more than a market. They are becoming part of our economic infrastructure.
Eventually, people will board trains or receive insurance payments and never even know that blockchain is involved.
How ZebPay looks at India
India is now one of the fastest growing crypto communities, with the number of wallets (accounts) growing by 18% month-on-month. This is happening even while we’re waiting for full regulatory clarity. At ZebPay, our active user base has multiplied by 3.8 times since March 2020. We expect this number to keep growing.
That’s why we’re so pro-regulation, because it would give people confidence to access this new part of our economy.
Moving forward, millennials are going to be our economy’s decision-makers. Many of them will view Bitcoin the way their parents view gold. Our job is mainly to give them simple, secure access to it.
What about you? What do you think about Bitcoin as digital gold? Let us know on Twitter!