Bitcoin has gotten some wild, and not so wild, predictions from analysts recently. The growth of the digital currency this year has led some analysts to predict that the digital asset was not done growing just yet. One thing has mostly remained constant across the predictions. The value that bitcoin carries cannot be denied. Bitcoin has made its mark in financial markets as a store of value and has been touted as digital gold ever since the asset began to gain notoriety.

Due to its high volatility though, there is no way to pinpoint where the value of bitcoin will be at a point in time. But its volatility has been one of the biggest drivers of adoption in the coin. Its viability as a currency, instead of just as an investment vehicle, also contributes to the asset’s value. But Analyst Marion Laboure does not see the cryptocurrency as a viable means of everyday exchange.

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Although Laboure does not consider the digital asset to be a dependable means of payment, the analyst believes that it could be digital gold. To Laboure, the limited supply of bitcoin means that it cannot be effectively used as a payment method. With 89% of BTC’s 21 million supply already in circulation and less than 10% of the world’s population owning the asset, there simply is not enough to go around for it to be considered as a payment method around the world.

However, the same reasons which Laboure cites for bitcoin not being a good mode of payment played into the analyst’s reasons for referring to it as digital gold. Its deflationary nature lends it as a hedge against inflation, which has been growing in recent years. Since bitcoin has a limited supply, more cannot be created and over time, the asset will become more scarce. As such, the value will increase as supply drops in relation to demand.

“People have always sought assets that were not controlled by governments. Gold has had this role for centuries. And yes, I could potentially see Bitcoin become the 21st-century digital gold.”

Ethereum also made it onto the analyst’s radar, which Laboure referred to as digital silver. According to Laboure, “If Bitcoin is sometimes called “digital gold”, Etheruem would then be the “digital silver”.

Laboure pointed out that the lack of regulation is not necessarily doing the growth of cryptocurrencies any favors. This is because while early investors may benefit from this lack of regulation, investors or businesses (institutions) that may want to get into the market may not due to regulations that they have to abide by. Completely barring these investors from bringing their money into the market.

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In addition, the analyst also explained that bitcoin’s carbon footprint is a cause for concern for the asset. Although steps are being made to make cryptocurrencies more eco-friendly, it is taking a while. And while the market waits for these upgrades, the environmental impacts of the asset were growing. This also keeps out investors and institutions who are genuinely worried about global warming from investing in cryptocurrencies.

It is expected that once the problem of environmental pollution is solved, more investors would come into the market. One of these is Tesla, which had suspended bitcoin payments for its automobiles, citing environmental impact of bitcoin mining as the reason. But expressed that BTC payments would once again be reinstated after the digital asset could boast of at least 50% renewable energy being used for its mining activities.

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