Why Bitcoin’s capped supply sets it apart from gold
09/24/2024 06:02Bitcoin’s evolution as a digital asset could mirror the internet’s transformation into a fundamental technology.
Bitcoin's potential as both a digital asset and a transformative technology was the central topic of debate, with comparisons made to traditional assets like gold and discussions about its future role in reshaping the financial system.
Roundtable anchor, Rob Nelson, led the conversation, joined by Kelly Kellam, Director of BitLab Academy; David Duong, Head of Institutional Research at Coinbase; and Brian Dixon, CEO of Off The Chain Capital. Together, they explored Bitcoin’s evolving narrative and its place in the broader technological landscape.
Kelly Kellam highlighted the misconceptions surrounding Bitcoin, noting, "The vast majority of people, especially in the western world, still don't really have a deep understanding of how different this is. It's not just a cryptocurrency… it’s a digital asset that contains properties of some of the best properties from very different industries." He emphasized that Bitcoin is already making an impact by integrating with power grids and addressing excess energy usage, adding that spot ETFs are helping to open more eyes to its value.
David Duong challenged the common analogy of Bitcoin as "digital gold," explaining, "Gold, for example… you can continue actually applying more resources, mining more gold. You actually can't do that with Bitcoin." He underscored that Bitcoin has a unique supply cap and a strong community structure, saying, "Bitcoin is actually a community built out of several groups, and that includes miners, developers, the known operators, and finally the users."
Brian Dixon added a long-term perspective, drawing a parallel to the early days of the internet. "In the early days of the internet, a lot of people thought the internet was worthless until it became priceless… Bitcoin will become priceless in the future." He predicted that, in hindsight, the internet's creation will be seen as a stepping stone for Bitcoin, calling it "a fundamental technology that's going to reshape the financial system."