December 12, 2024
US Treasury Labels Bitcoin as “Digital Gold” in Latest Report
 #CriptoNews

US Treasury Labels Bitcoin as “Digital Gold” in Latest Report #CriptoNews

Financial Insights That Matter

The new US Treasury assessment in the form of Bitcoin is considered “digital gold,” which means it is used to store value in the same manner that individuals use gold to protect against inflation or financial disasters.

US Treasury calls Bitcoin as "Digital Gold"
US Treasury calls Bitcoin as “Digital Gold”

According to the report, digital assets like Bitcoin, Ethereum, and stablecoin have been drawing fast, but the overall market is still small compared to traditional financial assets like U.S. government bonds.

The report noted that most people and businesses always use digital currencies for investment, hoping their value will increase in the future.  As a result, cryptocurrency will not yet replace things like U.S. Treasury Bonds, which are still in demand.

Bitcoin is mainly seen as a primary alternative to the store of value, like gold, but a lot of its growth also comes from people speculating on its price.

The digital asset market is still very young, and there are ongoing efforts to use blockchain technology (the system behind cryptocurrencies) and distributed ledger technology (DLT) to make financial processes like clearing and settling transactions faster and more efficient.

In short, while Bitcoin is growing and gaining popularity as an investment, its role in the wider financial system is still developing.

Also Read: Paul Tudor Jones Says He’s “Long” on Gold and Bitcoin



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