Bitcoin Mostly Purchased as Asset Instead of Payment Tool – EY

Sahana Kiran
BITCOIN
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The crypto landscape is undergoing continuous transformation. Notably, Bitcoin [BTC], the world’s first cryptocurrency, has maintained its position as the largest asset in the field. Nevertheless, its purpose has evolved over time. Initially introduced as a peer-to-peer payment system, BTC has transitioned into being primarily viewed as a store of value asset, given its substantial increase in value, rather than as a method for everyday payments.

More recently, when asked about crypto adoption in general, EY’s global blockchain leader, Paul Brody said,

“If you look at people who are buying Bitcoin, they are buying it as an asset. They are not buying it as a payment tool. Those who are buying Ethereum, are buying it as a computing platform for business transactions and DeFi services.”

Brody’s perspective suggests that the world’s preference for fiat currency in payment transactions remains strong. Nevertheless, he acknowledges that stablecoins have also gained attention. Additionally, he emphasizes that we are gradually moving closer to the adoption of central bank digital currencies [CBDCs].

Also Read: MicroStrategy Bitcoin Investment Stands at $60M Unrealized Gain

Is Bitcoin a store of value asset?

In times of economic turbulence, gold, and oil have historically served as significant assets for preserving value. However, the focus is now turning toward Bitcoin, primarily because of various factors such as its limited supply, resilience, and ease of transfer. Consequently, a growing number of investors are viewing Bitcoin as the digital equivalent of gold and are using it as a means to safeguard and grow their wealth over extended periods of time.

It’s worth acknowledging that Bitcoin is a relatively recent addition to the asset class, and its ability to endure as a reliable store of value in the long run remains untested. Nevertheless, its increasing popularity and widespread adoption indicate that it holds the potential to emerge as a significant player within the global financial system in the future.

At press time, Bitcoin was trading at $30,711 with a 2.2% daily surge. The asset saw a 10% rise throughout the last couple of days.

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Also Read: Bitcoin: Could BTC Hit $45K by the Start of 2024?