Skip to main content

Digital Gold Thesis

Definition

The Digital Gold Thesis posits that certain cryptocurrencies, primarily Bitcoin, function as a store of value similar to traditional gold, offering protection against inflation and economic instability. This theory highlights characteristics such as scarcity, immutability, and decentralization as attributes that lend themselves to long-term value preservation. Proponents consider it a superior alternative to fiat currencies due to its predetermined supply schedule and resistance to governmental interference. It suggests a role as a hedge asset in macroeconomic contexts.