Why digital gold matters now more than ever

The past week has been sobering for many Bitcoin investors, with BTC dropping more than 50% in one day as global markets reacted to the economic realities of a global pandemic.

But, Bitcoin is far from dead.

With all the recent market turmoil it's easy to get caught up in the daily volatility and forget to zoom out. Four-figure price swings, while consequential to expected returns and stressful as they occur, pale in comparison to the potential long-term value of Bitcoin.

The Market Opportunity

Bitcoin competes within a massive market for store of value assets and while Bitcoin is many things to many different people the most important thing for investors is that Bitcoin is digital gold.

While the market for store of value assets is much larger than just gold (you can play around with the numbers here), including asset classes such as bonds, real estate, and art, the gold market alone is worth trillions and is Bitcoin’s nearest-term aspiration. And lucky for Bitcoin investors, the commonly cited $7 trillion gold market value is a moving target. It is now closer to $10 trillion.