Bitcoin Like Gold, Besides Liquidity Problem
Bitcoin has similarities to gold, but investors are concerned about its lack of liquidity. This opinion was given by global head of commodities research Jeff Currie.
He said in an interview on Bloomberg Television, that Bitcoin was not much different than gold, because it did not have liability attached to it by definition, like a security.
The cryptocurrency topped $11,000 on Wednesday, marking an almost 12-fold gain for the year, before retreating later in the day. In comparison, gold has climbed about 12% this year.
Warren Buffet called Bitcoin a “real bubble”, and venture capitalist Peter Thiel mentioned that critics are underestimating it.
As Currie noted, most bitcoin traders didn’t see the currency as interchangeable with gold, and that was the main difference between the two. He said that gold has $8.3 trillion of gold above ground, and that is a proof of it’s real liquidity.
On Wednesday Bitcoin touched $11,000 and rose over this point. Buyers dismissed increased warnings that the largest digital currency is an asset bubble..
“Lack of liquidity is what’s creating that volatility that has everybody concerned about bitcoin,” Currie said. He prepared the size of the market in gold with bitcoin saying that gold will never have the same volatility as the digital currency.
