The recent report by Bloomberg mentions the various features that are common with physical gold, but in some ways, Satoshi Nakamoto’s coin is better than gold. Moreover, Bloomberg’s analysts have expressed bullish thoughts for the top leading asset.
Mike McGlone, the senior commodities strategist at Bloomberg, published the midyear report covering the Bitcoin and its potential as digital gold.
The age of crypto asset class is not more than ten years old but it has gained enough reputation in a less period of time in comparison to other asset classes.
At the time of BTC creation, Nakamoto was said to have the idea of digital gold (without the influence of any third party). Fortunately, his creation has many common characteristics with physical gold.
Bitcoin offers investors an opportunity of a digital store of value that is not the case with gold. In the report, researchers discussed the unique features of Bitcoin such as the growth of active addresses and coin scarcity.
Bullish Sentiments for Bitcoin
They have presented a bullish scenario for Bitcoin throughout the report and it may be due to the current weak economic situation. The report said:
“Unparalleled global central bank easing and rising gold values are enduring trends favoring a higher Bitcoin price.”
Based on the data of active addresses, Bloomberg analysts set the price prediction for $12,000.
“The number of active Bitcoin addresses used, a key signal of the 2018 price decline and 2019 recovery, suggests a value closer to $12,000, based on historical patterns. Reflecting greater adoption, the 30-day average of unique addresses from Coinmetrics has breached last year’s peak. In 2019, when this metric exceeded the previous high, it preceded Bitcoin’s recovery from the depths of a bear market,” the report added.
Due to decreasing volatility, Bitcoin is behaving like digital gold. The volatility of the leading digital asset has touched its lows recently, which in turn, is beneficial for its enormous adoption by institutional investors.
“The more disdain from Bitcoin bulls should be for the better, potentially keeping the price tilted upward for the consolidating crypto. Declining Bitcoin volatility reflects maturation toward a digital version of gold, and history teaches us that risk measures typically follow prices higher.”