Alex Gurevich writes on the origins of gold as a store of value and Bitcoin‘s path toward the same outcome.
Bitcoin is battling to become digital gold, while ether, for example, is elbowing to become digital copper. If the analogy holds, the price of ether will be driven by technology demand, while the price of bitcoin by the need to store liquidity.
He then argues that altcoins are complementary – not competition to bitcoin.
As a corollary, the rise of altcoins geared towards specific purposes is not at all dilutive, but actually supportive of bitcoin. While diminishing its share of trading volume in actual transaction flows, it shields bitcoin from being demand driven and makes it a more attractive store of value.
He then examines bitcoin’s likelihood to become digital gold by answering four questions. His conclusion:
In summary, despite the rise and fall of various alt coins and fork considerations, “time” works FOR bitcoin, not AGAINST it. Every day it doesn’t disappear, it gets one step closer to a permanent status of digital gold.