The latest Coinbase news show that the exchange looks forward to the May Bitcoin halving event which draws closer. In fact, the exchange recently took to pushing the “Bitcoin as digital gold” narrative. A tweet storm shows that Coinbase claims Bitcoin will officially become the new digital gold, outlining all the reasons why the halving and the subsequent supply rate reduction can cement its position.
In May 2020, #Bitcoin will experience its third “Halving.” Bitcoin is a digital asset with a fixed & predictable supply, unlike dollars. Bitcoin is designed to be scarce, like gold. Here’s what that means and why it matters in historical context: https://t.co/CLXp7Okb04
— Coinbase (@coinbase) February 7, 2020
Ever since the gold standard was broken back in 1971, the value of the dollar has declined and gold’s value has risen over 4,000%. This is why gold is seen as a major reference to coins in the cryptocurrency news. Right now, gold has more value than similar metals such as copper mainly due to its relative scarcity and difficulty to acquire.
Meanwhile, Bitcoin has been designed to be scarce just like gold. In that manner, it is very difficult to acquire BTC through the Proof-of-Work process of mining. All of this supports the fact that Coinbase claims BTC will take a new position and officially become the digital gold that many have been referring to in the past.
The exchange’s blog post reads the following:
“Armed with a myriad of technological advantages, accelerating development, and maturing global market, Bitcoin is a store of value to rival gold in the digital age.”
What’s also important to note is that the supply of Bitcoin is limited by design. There are new tokens being minted as a reward every time a block of transactions is mined. The initial reward is 50 BTC per block and has already undergone two halving events, bringing it down to the current 12.5 BTC per block.
“Gold’s stock to flow is higher than any other metal commodity, and bitcoin is set to soon follow,” Coinbase claims.
Right now, there are numerous forecasts about the upcoming price of Bitcoin. If there is no demand, BTC may not reach the digital gold standard we are all hoping for. And as central banks increase the money supply, economies can prosper. However, if the money supply overwhelms demand, then we can see major hyperinflation events.
Today’s market news show that Bitcoin (BTC) is stable above $9,800.
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