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Morgan Stanley’s view on Bitcoin as a new gold

16 August 2017 21:00, UTC

Recently Tom Price, the Morgan Stanley analyst from London, started to notice messages and opinions that would seem very amusing to anyone from 2009: investors are seriously comparing Bitcoin to gold in terms of both value and reliability. It can be suggested here that these investors perceive the benefits of blockchain technology just as humanity always perceived physical properties of gold.

However, Mr. Price, as experienced and skeptical as he is, tells that he does not share this current enthusiastic sentiment. His report is cited on Bloomberg. Gold, he further explains, has endured and preserved its value for over millennia, while Bitcoin, even as secure and valuable as it might seem, is still a new technology: its global platform “literally requires the lights to stay on”, as he puts it.

“The popular view that this immature currency is superior to gold as a hedge against inflation/uncertainty, still needs to be tested,” Price concludes. And everybody should consider the following: gold is not digital, which means its value will remain high even after any war humanity will be foolish enough to wage or a huge catastrophe that might lead to collapse of current civilization as we know it.

And, lastly, one should not forget that currently Bitcoin is its growth stage and the market is cheerful, but if the sudden price drop occurs, we will undoubtedly see some articles telling how the digital currency revolution has failed and Bitcoin should be thrown to the dustbin of history.