Coinbase remains one of the most successful crypto platforms in the market right now, despite the many companies that have come since. Even though the company has faced some animosity over the years that it has been working in the field, people still have a hard time trying to choose another.
But as the crypto market continues to struggle under the weight of rising inflation, the truth is that many investors want to get into the market but struggle to commit. Since the entire market continues to go downhill, many are just looking for the bottom so that they can make their investments.
As the entire market continues to increase in popularity, many have started to offer their two cents on the matter. More specifically, the current CEO of Coinbase believes that the adoption rate for cryptocurrencies will skyrocket soon enough. As the entire market continues to grow, it is safe to imagine that a large population of the market will likely try to get in on the action.
Therefore, the CEO of Coinbase, says that Bitcoin could likely become the new gold asset for the financial market within a decade.
Adoption is Still a Long Way from Necessary
In order for Bitcoin to become the next gold asset, it needs to significantly increase its adoption rate to meet a wider audience. The company needs to cast a wider net and bring in more customers to help it grow larger and safer as an investment type. Under the current circumstances of the market, that will look unlikely.
But despite making a prediction BTC will become the new gold, it still has a long way to becoming a safe investment. More specifically, it still has a long way to becoming what many investors call a flight-to-safety asset.
Becoming a Flight-to-Safety
A flight-to-safety asset is a type of asset that most investors will flock to when the investment market starts to get rocky. They specifically want to be able to hedge against inflation and other factors that could possibly be making prices rise.
To become a flight-to-safety asset, it is especially important for the asset to not fluctuate against the economy it is in. If it does, it could lead to a serious problem where investors could lose their money and faith in the asset.
Could Bitcoin Replace Gold
The best thing about Bitcoin is that it has already reached a point where it is too big to fail. Therefore, since Bitcoin will always bounce back, most investors already hold on to their Bitcoin in a way to edge against most currencies. Therefore, saying that Bitcoin might replace gold is very much possible.