David Marcus, Head of Libra, considers Bitcoin a form of digital gold


David Marcus, the Head of Libra, was present at the recent New York Times DealBook revealing in front of an audience some ideas about Bitcoin and the crypto market.
Marcus has given some strong indications as to where Bitcoin is going, and he has also pointed out that Bitcoin is more than a simple cryptocurrency. From his point of view, Bitcoin is a form of digital gold.
The Head of Libra went on to explain why he thinks Bitcoin should be seen more like digital gold and less as a digital payment method by bringing into discussion Bitcoin’s volatility. The same way that regular gold price fluctuates, Bitcoin’s value tends to do the same thing.
From the early beginning when BTC was only worth pennies to the sky-rocket high of almost $20,000, Bitcoin has proven to be indeed a volatile asset. However, regardless of its volatility, it’s still considered to be a cryptocurrency, though it may as well be considered as a form of digital gold. Of course, the gold market is worth 50 times more than Bitcoin’s market. If in Gold’s case, we may talk about an $8 trillion market, Bitcoin and cryptocurrencies market cap can hardly reach $200,000 billion.
Since Bitcoin emerged as the first cryptocurrency, it was expected to have a volatile behavior. But even with this particular feature, Bitcoin is still considered to be an extremely important asset, one that has managed to outgrow almost every other asset, both digital and physical. Marcus’s comments on Bitcoin also stated the fact that this digital currency is part of an investment class that is no longer correlated with the financial market.
When it comes to big technology, a new era of decentralized finances presents itself as a great opportunity for finances all over to grow. But even though Facebook’s Libra has been viewed by many as a new way to deal with finances, governments do not share the same perspective.
And with the “Keep Big Tech Out of Finance Act” that was proposed by the U.S. Congress, Facebooks’ Libra project has now taken a turn. Companies like Visa, MasterCard, eBay and PayPal decided to leave the Libra Association and the most important reason was due to regulatory pressures and privacy concerns. Still, hopes of launching the new Libra in 2020 still exist and methods to make this happen in accordance with the established regulations are still being proposed.

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