The post Bitcoin’s Potential as Digital Gold: Academic Insights on Its Role Compared to Gold appeared on BitcoinEthereumNews.com.

Bitcoin has emerged as a prominent digital asset often compared to gold, sparking debates on its potential to serve as a modern store of value. Recent academic research explores Bitcoin’s characteristics, volatility, and evolving market dynamics to assess whether it can truly replace gold. According to Professor Andrew Urquhart of Birmingham Business School, Bitcoin shares some traits with gold but lacks the historical stability and crisis resilience that define precious metals. Explore the latest academic insights on Bitcoin’s role as digital gold, its volatility challenges, and the evolving relationship with gold as a store of value. ‘, ‘ 🚀 Advanced Trading Tools Await You!Maximize your potential. Join now and start trading! ‘, ‘ 📈 Professional Trading PlatformLeverage advanced tools and a wide range of coins to boost your investments. Sign up now! ‘ ]; var adplace = document.getElementById(“ads-bitget”); if (adplace) { var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”)); var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex; adplace.innerHTML = adscodesBitget[adsindex]; sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1; sessionStorage.setItem(“adsindexBitget”, sessperindex); } })(); Bitcoin as Digital Gold: Scarcity and Decentralization Under the Microscope Bitcoin’s finite supply capped at 21 million coins and its decentralized issuance mechanism position it as a unique digital asset often labeled “digital gold.” Unlike fiat currencies, which can be inflated by central banks, Bitcoin’s transparent and algorithmically enforced supply model offers a compelling scarcity narrative. However, academic studies such as Baur et al. (2018) reveal that Bitcoin’s price behavior diverges from traditional safe-haven assets like gold. Instead of maintaining value during economic downturns, Bitcoin tends to exhibit speculative characteristics, influenced heavily by investor sentiment and broader market trends. This fundamental difference challenges the notion of Bitcoin as a direct substitute for gold, though its growing adoption could potentially shift this dynamic over time. Volatility…

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Filed under: News - @ July 20, 2025 1:19 pm