Since the hype around Bitcoin being “digital cash” in its current form deflated, a number of leading industry commentators, analysts, researchers, and investors have claimed that BTC is an optimized, digital version of gold. An early-stage crypto pioneer, believed to be Satoshi Nakamoto by many, touched on this thought process in a recent presentation.

Central Banks May Supplement Reserves With Crypto

Speaking at Tel Aviv University for the inaugural Israel Bitcoin Summit, which comes just days after a crypto-centric, 1,000-attendee rager in Israel, Nick Szabo claimed that over time central banks could turn to cryptocurrency. This news comes courtesy of Finance Magnates, whose representatives likely attended the event.

Szabo noted that over time, government-backed banks will look into replacing their gold holdings for BTC. He explained that the orange(ish) precious metal is “physically vulnerable” at its core, specifically citing cases where the Axis plundered gold in World War Two. Yet, with Bitcoin, these fears are eliminated, as the asset isn’t physical, which in turn, makes it that much harder to loot.

Just recently, we reported that a Russian professor and economist with ties to the Kremlin stated that his nation’s central bank and oligarchs will turn to Bitcoin, instead of gold or U.S. dollars. The professor, crypto-friendly Vladislav Ginko, explained that as the U.S. continues to pressure Russia by imposing stringent sanctions, certain financial entities and individuals will turn to the leading cryptocurrency.

So it seems that Szabo’s prediction may already be coming to fruition.

Bitcoin Value Prop

Szabo’s recent comments accentuate Bitcoin’s most well-understood value proposition. As reported by Live Coin Watch previously, Weiss Cryptocurrency Ratings’ Juan Villaverde claimed that BTC is well on its way to “becoming a veritable digital gold.”

He noted that the asset costs “virtually nothing to store,” while still supporting a number of other positive characteristics: portability, security, fungibility, and limited supply cap. Villaverde isn’t the only investor to think along these lines.

Ryan Selkis, the chief of cryptocurrency data/analytics/information provider Messari, told Bloomberg that BTC is a great hedge against an “inflationary recession.” Painting a foreboding picture for centralized assets, like stocks, government bonds, and fiat, Selkis noted that investors will “flock” to stores of value, like a digital gold, in trying times. As it stands, the digital embodiment of gold is best represented by Bitcoin, and as such, BTC would likely see an influx of buying pressure once consumers lose faith in traditional markets.

Lou Kerner, who once called U.S.-issued fiat a “Ponzi scheme,” echoed this sentiment. The Crypto Oracle founder noted that Bitcoin, a better store of value than gold in his eyes, could surpass $100,000 apiece, especially as consumers come to the realization that they can build a solid investment thesis surrounding BTC.

Even the Winklevoss Twins (Winklevii), the founders of the Gemini Exchange, potential Facebook founders, and Olympians, recently claimed that Bitcoin will continue eating up bits of gold’s market capitalization until the crypto eventually passes its physical counterpart.

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