How Bitcoin Could Replace the USD and Become Digital Gold

Published: 26 Apr 2021

eToro, the world's leading social investment network, released its Q1 2021 report, produced in partnership with The Tie, a leading provider of alternative data for digital assets, titled Inherent Value. Inherent Value looks at three highly relevant and timely topics. The report covers three timely and relevant issues. First, it explores The Pathology of Hyperinflation and looks at the role Bitcoin would play in this scenario. Next, NFTs: Beyond the Hype, seeks to demystify an asset that has existed since the dawn of the internet, finally, in Sector Analysis: Which Category of Coins is Best? crypto-assets are reviewed at a category level using an approach that's typically limited to Wall Street.

"As Bitcoin, Ethereum, and other crypto-assets regularly reach all-time highs, more new investors will see their value and enter the market," said Guy Hirsch, US Managing Director at eToro. "So we felt these were important topics to address to help new and existing crypto investors understand some of the factors that helped get bitcoin to its current position, the excitement behind NFT's, and offer an alternate way to look at various assets before investing."

Key themes discussed in the report include:

- How Bitcoin could replace gold: While this scenario is potentially already underway, both in the continuing and increasing interest in Bitcoin as an asset and developments in the DeFi and NFT space, investors would have to shift their perspective from implicitly valuing physical goods to valuing digital ones.

- Real vs. Hype with NFTs: The NFT craze has provided even more evidence that both crypto and blockchain technology have the power to change the world in profound ways.

- Should coins be categorized into specific sectors?: Over 200 coins were organized into five different categories -payments, infrastructure, Defi, data services, and Media - to understand the extent to which coins can (or should) be reviewed at this level, how each sector has been performing, and uncover potential drivers of total sector growth.

"In Q4 2020, Bitcoin dominated the crypto market, and while BTC continued its record performance into Q1 2021, this past quarter was defined by the return of altseason and the rise of NFTs," said Joshua Frank, CEO of TheTie. "Bitcoin dominance fell significantly as retail and crypto-native institutional investors turned to alts attracted by the prospect of massively outsized returns. Similarly, NFTs surged, achieving mainstream adoption faster than anyone in the space thought possible. While I remain skeptical that the NFT wave will continue at this pace, I think market conditions remain extremely bullish for altcoins relative to Bitcoin as money continues to pour into crypto in record amounts."

Each area of the market for investors to understand and will help them be more informed as they continue to gain investing experience. Inherent Value is available for download here:

Share this

About Us

Since 2005 Corporate INTL has been leading the way connecting business leaders, financiers and advisers around the world.

Our business publications reach hundreds of thousands of business leaders and decision makers in the finance and advisory communities worldwide.

Our Directory

Our Find an Expert adviser directory is the number one tool for business leaders, investors and in-house counsel to assist them in finding a proven and recommended adviser in a huge variety of practice area specialisms and countries around the world.

Mailing List

If you wish to join the Corporate INTL mailing list to receive newsletters and bulletins surrounding our products, key news, events and relevant stories related to global business, please click the link below and fill out the form provided.