The post Bitcoin And Gold: China’s Largest Bank Highlights Comparable Scarcity appeared on BitcoinEthereumNews.com.

Digital assets, like Bitcoin, have ushered in a new era for the cryptocurrency industry by radically changing the financial and technological landscape. Recently,  the world’s largest bank by total assets, the Industrial and Commercial Bank of China (ICBC), has applauded the remarkable growth and evolution of digital currencies, emphasizing their transformative potential in the financial landscape. Particularly, the bank focused on Bitcoin, likening its limited quantity and intrinsic rarity to that of gold.  Bitcoin’s Scarcity Comparable to Gold ICBC bank lauded digital currencies for their significance in a constantly changing financial environment in its Macro Economy In-depth Analysis. VanEck head of digital asset research Matthew Sigel shared the report on the X (formerly Twitter) platform, calling it a love letter to Bitcoin and Ethereum. The analysis highlights the exponential increase of digital currency types and uses as a result of human beings’ capacity for imaginative belief. According to the report, the ongoing evolution of digital currencies is driven by market demand, as evidenced by the inception of Bitcoin, the creation of Ethereum, and the ongoing investigation of official digital currencies by different central banks. Furthermore, the bank made a comparison between Bitcoin and gold, claiming that the crypto asset retains a scarcity similar to gold. Given BTC’s mathematical consensus, which addresses its issues of being hard to split, hard to detect authenticity, and cumbersome to carry, this comparison was made. “Its monetary attributes are gradually weakening, while its asset attributes are constantly strengthing,” the report added. ICBC’s analysis highlights Bitcoin’s limited supply of 21 million coins in keeping with the finite character of gold, which has historically supported its value. With only 21 million coins ever to be produced, BTC, sometimes known as digital gold, has long been praised for its scarcity. Specifically, the crypto asset’s rapid increase in value…

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Filed under: News - @ June 12, 2024 8:22 pm